Crypto traders and investors would be breathing an air of relief after checking their various crypto holdings today. This is because most of the digital assets that have seen reds in the last few days are now performing well since yesterday.
Leading the charge is Bitcoin after the digital asset saw a massive fall in price to register the reds last week. The entire crypto market cap has been seeing positives after the recent 24-hour fall that saw it retrace back to $1.4 trillion. Previously, the entire crypto market cap touched $1.7 trillion after the crypto market saw massive surges, which saw Bitcoin touch the $58,000 price mark.
Bitcoin is leading the market recovery
Leading the market’s recovery is Bitcoin, as the digital asset is now in the greens after a torturing trade during last week saw the asset fall to as low as $43,000. Within one week, Bitcoin lost close to 25%, a performance that comes in second behind the sell-off event in March 2020. The coronavirus pandemic-induced sell-off saw the leading digital asset trade at $3,500 from its previous price of close to $7,500 at the period.
Also, volatility increased by 5% in the 30 day and 60-day moving averages, signaling a massive sell-off by traders in the market. Compared with the market movement of October, where Bitcoin saw volatility drop by 1.7%, the digital asset became more stable than some fiat currencies globally.
The market boom also got analysts worried because there is uncertainty growing concerning the asset anytime there is a surge in the price of digital assets. Bitcoin was not the only asset that showed promise to start this week as various top-placed and mid-placed tokens brought in profits for their holders.
Cardano pushes into top 3 digital assets
The second-largest digital asset, Ethereum, saw a massive 6% rise in the market, and it was attributed to the over 18% rise that Aave also witnessed in the same span. With Aave’s rise, the asset has cemented its place in the top 20 of digital assets according to their market cap. However, Cardano was the story’s dark horse as the digital asset saw gains despite the entire market bleeding. Cardano has edged out Binance coin and taken its place in the top 3 of the digital assets with this feat.
Binance coin also saw a turn in fortune days after celebrating the asset reaching $333 in the market to enter the top 3 digital assets. With the market back from bleeding, one factor that is responsible for that is investor confidence. With governments worldwide agreeing to up their bond purchase to enable market recovery across the globe, the United States and European markets have seen massive boosts.
Last week saw significant analysts show their concerns of how much inflation the yield from government bonds would bring into the economy. The move was that central banks were supposed to stop buying bonds that would see the economy plunge, but this has been revoked. A Bloomberg report also shows that risk appetite is presently on the rise.