After the bullish momentum in Bitcoin slowed down, Altcoins took over. Following another week of breaking a record level, Bitcoin has steadied a bit and is now hovering around $48,000. But Altcoins still keep rising with no signs of slowing down. Yesterday, Bitcoin hit $4,0000, up from last week’s $38,000.
The digital currency recorded a sudden rise last week in response to Tesla’s adoption of BitcBitcoin adoption of $1.5 billion in the BTC. Elon Musk’s company’s move further convinced more individuals and institutional investors to join the crypto ecosystem after national investors and corporations such as BNY Mellon have expressed interest in backing Bitcoin.
Altcoins to Continue their Bullish Momentum
Ethereum, the second cryptocurrency to Bitcoin, has reached $18,00, a 3% rise from Saturday’s price. The asset jumped by 6% in just one week. But while Cardano lost 2%, settling at 0.91, XRP lost 0.5% to settle at $0.580 and Polkadot, jumped by 12% to reach $28 yesterday.
However, the daily report is quite different from the general performance of altcoins throughout last week. This was because altcoins recorded weekly positive results overall as ADA jumped by 62% while XRP by 33%. Apart from the two listed above, Binance Coin also jumped by 70% last week, hitting $127, and was ranked as the number one in terms of performance.
While Stellar has jumped by 14% since yesterday, it rose by 15% over a week and is now at 0.51. Litecoin daily movement also rose by 5% but weekly by 22%, and it is now at $196. As for Chainlink, it rose by 6% from it yesterday and 16% from last week to $29.
Hedge funds are investing more in cryptocurrencies. Hence, altcoins are attracting more pressure from the investing public. Most investors who once focused all their crypto Investments on Bitcoin have now diversified because of their continuous gain in the altcoin market. Investors also see altcoins as less risky than Bitcoin. So, this is the best time to invest in altcoins.
Dogecoin Rally Subsides
Dogecoin’s recent rally has subsided. As of now, Dogecoin ranks 12th in market capitalization of cryptocurrencies, nearing $9 billion, as it slid by 0.5% from yesterday’s level but jumped by 40% from last week’s price. Recently, Dogecoin was the talk of the town when the billionaire and Tesla’s CEO, Elon Musk, tweeted about the coins leading to investors pumping it to a higher price. Moreover, other celebrities participated in promoting the coin, which led currency’s sudden rise.
The present microeconomic fundamentals are major factors boosting the rise of cryptocurrencies. Many banks are now allowed to be custodians of cryptocurrencies. Stakeholders have asked if the DeFi market could set a pace for the crypto market and become the preferred choice of institutional investors.
Though DeFi is still in its embryonic stage, we have seen indications that it will soon mature. They have been asking if institutional investors can also show more interest in the DeFi market. The institutional endorsement of cryptocurrencies the confidence of retail investors in the market. The crypto market is an interesting ecosystem. New coins are cashing in on the fundamentals propelled by the old coins.