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Digest: The Main News On The Cryptocurrency Market (January 4-10)

For crypto enthusiasts, 2021 started pretty well – Bitcoin doubled in value, Ethereum burst into the top 100 assets by market cap, and other altcoins also wasted no time in the green zone. New highs, forecasts of where the crypto market is heading, and another hype around Dogecoin – you can read about it in our weekly review.

Bitcoin skyrocketed to $41,900

Bitcoin moved along a parabolic path and easily updated its own records. On January 2, the price of Bitcoin exceeded $35,000, demonstrating an increase of $4,500 during the day. But the New Year gifts from the flagship cryptocurrency did not end there.

On January 8, Bitcoin once again broke through the price ceiling – the leading exchanges recorded a new record of $41,940. It is noteworthy that in just 3 weeks after breaking the historic high of 2017, Bitcoin doubled in value. But how long will the asset’s vertical movement last?

Analyst Michael van de Poppe is convinced that Bitcoin may enter a “healthy correction” phase shortly. We are now seeing a swarm of whales at the $38,000 level trying to protect the area as short term support. After overcoming the $40,000 milestone, the volatility of the BTC has extremely increased, so the asset price rollback is not far off.

This is an amazing year. Bitcoin’s current movement deserves a round of applause. The higher the price of Bitcoin rises, the more money flows into the crypto market and the higher the likelihood of the altseason approaching,

Altcoins were quick to follow Bitcoin and have shown excellent bullish dynamics on that week: since the beginning of 2021, Ethereum (ETH) has risen by 64%, Stellar (XLM) has jumped 170%, Cardano (ADA) – by 52.8%. Even XRP was noted, which, after a wave of delisting from leading exchanges, unexpectedly rose 27% on January 8.

The volatility of BTC opens up excellent opportunities for trading because its fluctuations are about 10%, while altcoins fluctuate up to 20-30% per week. If you do not experience the FOMO syndrome and be realistic, you can make good money; for this, you should adhere to the golden rule: buy on corrections, sell when making a profit, working with stop levels.

Ethereum broke into the top 100 best assets by capitalization

Ethereum can be congratulated on a new achievement – for the first time, the asset was included in the list of the world’s best assets by market capitalization. At the time of writing the review, Ethereum is in 83rd place with a capitalization of $149.66 billion.

In general, 2021 began for Ethereum with new local highs: on January 7, the asset price exceeded $1200, demonstrating a weekly gain of 62%. The bullish movement continued over the weekend: on January 10, the Ethereum price crossed the $1,300 mark. For the first time, the asset came close to the all-time high of $1,432, which was reached on January 13, 2018.

Ethereum became the second cryptocurrency after Bitcoin, which was in the list of the best assets by capitalization. Gold remains in the first place in this rating; Bitcoin, with a market cap of $709.3B, is in 10th place, with Facebook and Tesla remaining its closest competitors. Great neighborhood.

Ethereum, indeed, is an excellent asset for increasing capital, it has great prospects, but the current value is a bit overstated. Perhaps, in two years, this price will seem ridiculous, and it will cost 5000 USD, but for now, it is necessary to wait for a rollback to purchase it.

Cryptocurrency market cap exceeded $1 trillion

The insane rally of Bitcoin and Ethereum led to another all-time high: on January 6, for the first time, the cryptocurrency market capitalization exceeded $1.1 trillion. In just a few days, the total capitalization increased by more than $170 billion. The last time we saw such a sharp jump was in early 2018, when, under the pressure of bulls, the market capitalization of the cryptocurrency reached $830 billion.

Bitcoin continues to dominate in terms of market capitalization, with an asset accounting for approximately two-thirds of the total cryptocurrency value (67.7%). Ethereum has also increased its market power, and now its share of the “total pot” exceeds 13%.

Shortly, the market capitalization of altcoins may increase significantly. We are talking about the altseason, the prerequisites for which are already showing through the current dynamics in the market. In particular, this weekend the price of Bitcoin stopped growing and fluctuated in the range of $36 000–$41 000.

As a rule, during the BTC consolidation, market participants turned their attention to altcoins. Given the current swing in Bitcoin, analysts agree that the market is already on the verge of an outflow of profits from trading BTC into altcoins.

The growth of market capitalization is an excellent trigger for entering the market, but before buying this or that asset, you need to analyze it. It is advisable to buy on corrective movements and strictly on the movement of the market. If the correction develops into a fall, then it is necessary to fix the loss and buy if the trend changes from down to upward.

Shocking Profits, a quest for the “next Bitcoin price level”, and increased focus on stablecoins

Traditionally, the beginning of January is the time for forecasts. Richard Byworth, Diginex CEO, shared his thoughts on what awaits the crypto market in 2021. He highlighted several key landmarks.

Firstly, 2021 could be an extremely busy year for the crypto industry as a whole. Byworth is convinced that Bitcoin is at the very beginning of a bullish cycle, so as early as December, the flagship cryptocurrency can safely be in the six-figure range.

2021 could bring shocking profits. After Bitcoin soars north and bounces off the $100,000 mark, altcoins will rapidly follow in that direction,

Secondly, 2021 will pass under the banner of the fear of lost profits. According to Diginex CEO, retail players will be looking for the “next bitcoin” – an altcoin that can generate 1000x profit. Those who “didn’t have time to get on the departing train car” and buy Bitcoin at $10,000 will push altcoins to new highs.

Thirdly, in 2021, interest in stablecoins may acquire a new impetus. Considering that many of the stablecoins are launched based on the Ethereum blockchain, in the future, this may work in favor of ETH.

We can talk for a long time about price levels, especially when there is no extremum. 50, 100, or 200,000 USD for 1 Bitcoin remains just an opinion. There is no endless to increase, and a correction always comes. For BTC to see the price of 100,000 USD, we have to correct by 40-50% today and then break through the peak of 41,000 USD that has arisen.

Dogecoin soars by 125% after a tweet from the adult movie star

As it turned out, not only Elon Musk can cause a stir around Dogecoin. This time, DOGE’s price skyrocketed following a tweet from the adult movie star Angela White. The actress admitted that she has been keeping DOGE since 2014 and is expecting its “To The Moon”. As a sign of love for Dogecoin, Angela White posted a photo of her wearing in a T-shirt with a Shiba Inu dog meme.

January 2, just a few hours after this publication, DOGE increased by 125% and tested the $0.14 mark. As a result, the market capitalization of the coin has grown to $1.5 billion. For the first time, the coin surpassed the level that was reached back in 2018. However, DOGE remained far from it’s all-time high of $0.0153.

Once again, Dogecoin has become a pump target. At the time of writing this review, the hype had already subsided: in 24 hours the price of DOGE dropped by 9.84% to $0.0009.

Interestingly, this coin is always the object of PR to a greater extent: then Vitalik Buterin draws attention to it, and the price is flying up, now A. White. In general, it can be in the portfolio, and how many altcoins can count on XX.

Ethereum fees increased nearly twice

Ethereum’s 24-hour trading volume surpassed $53 billion early this week. As a result, the cost of transactions on the network skyrocketed. On Monday, January 4, the transaction cost the user an average of $10.2, on Wednesday the commission on the Ethereum network almost doubled and fluctuated around $17.43.

That is Ethereum’s new maximum in fees. If we analyze the dynamics of this indicator in 2020, such record leaps took place in September: then, the commission increased to $12.54, and the hype on DeFi platforms played an important role in this.

At the time of this writing, the commission has dropped to $1.63. The “insanely high cost of gas” on Monday suspended the launch of the Aavegotchi project, a game based on the use of non-fungible tokens (NFT). According to the developers, users will be able to see the game at the end of January.

The launch of Ethereum 2.0 is expected to solve the problem of high commission costs. It may take 1.5-2 years to fully implement the update, so users may still face a similar increase in the cost of the commission, given the current market dynamics.

There is an option that the fees in the network grew due to the increase in the value of assets, and part of the transactions was attributed to the sale of assets. If an earlier part of it lay on wallets, in anticipation of price increase, now the load on the network has grown because many wanted to sell part of their portfolios on exchanges, because of this, we observed increased loads and some delays in block confirmation.