The volatile crypto market is set for a revival. The primary cryptocurrency – bitcoin – had an unpredictable past week, where it went from trading safely at $19K to suffering a massive drop at $17,500. However, bitcoin wasted no time in recovering losses and touched $19K again in just two days, as a result of rising BTC dominance. And what’s even more amazing is that besides Ripple (XRP), which is, unfortunately, seeing a constant drop, most altcoins are green.
The Globenewswire concluded its week with bitcoin rising past the $18K threshold and reclaiming a daily high at $19,300. On December 14, just 24 hours after its fall, BTC made significant weekend gains. However, Santiment, a firm that specializes in analyzing the crypto market, said that the bitcoin situation can change yet again, and pretty quickly. Their data reflected that the social media sentiment about the cryptocurrency was the most negative in almost two months, with most users calling it overvalued. This has led to panic-induced sell-offs, as traders are keen on moving their funds to exchanges to make them disposable, leading to spikes in exchanges’ inflow.
The recent price falls impacted altcoins the worst, but just like bitcoins, they, too, are making a comeback. Ethereum rose to $578 as of December 14, after increasing 3% in value in just 24 hours. Also in green are the following altcoins – Bitcoin Cash at 1.7%, Chainlink at 1.3%, Polkadot at 1.5%, Cardano at 1.5%, Litecoin at 3.5%, and Binance coin at 2.4%. While these gains are good news, altcoins seem to have lost value overall, especially due to the rising dominance of Bitcoin. As of December 14, BTC dominance in the market stood at 63.7%, as per CoinMarketCap.
Among altcoins, only Ripple makes an exception, ending up in red for two days back-to-back. After the Spark (FLR) airdrop snapshot on December 12, XRP has been on the decline and recorded a -4.21% drop in value. Despite being the third-largest cryptocurrency in the market, XRP is struggling at $0.50. However, among the gainers in the top 100, NEM stands out by a long shot. XEM rose in value by over 7.5% to trade at $0.25. Other gainers include Protocol at 6% and Quant at 5.6%, with Ziliqa, Ren, and 0x at 5% each, rounding up the list.
The aforementioned spikes in value over the past week have been great news for the cryptocurrency market. Its overall market cap has increased to a whopping $560 billion. In plain terms, since the crash of the bitcoin right before the weekend, the market has gained roughly $40 billion. Despite fears of overvaluation and predictions of yet another crash imminent, the cryptocurrency market is still going strong.