Alternative digital currencies are flying high in light of the recession of Bitcoin and Ethereum
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Answer Alternative digital currencies are flying high in light of the recession of Bitcoin and Ethereum
Last week, the bitcoin price dropped from a high of $9,800 to the $8,900 level before bouncing back up to $9,100 at the time of writing.
While Ethereum decreased by 10%, after it was recorded at 248 dollars, it fell to the level of 215 dollars.
Despite the decline of the major market leaders coins, many of the smaller altcoins not only rose, but also set new all-time records.
What is causing these smaller altcoins to rise while the big cryptocurrencies continue to struggle to maintain their price under the same market conditions?
Bitcoin and Ethereum Resist:
Bitcoin and Ethereum continue to struggle and resist to reach the levels above $10,000 and $250 respectively.
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Bitcoin and Ethereum are having a hard time maintaining their price levels, especially in light of the spread of the Corona virus.
Even worse, two of the major cryptocurrencies that dominate the market are now having a hard time maintaining their levels.
Uncertainty in the stock market and fear of a spike in coronavirus cases have contributed to users turning to the crypto market.
The chances of a quick recovery are fading day by day.
Instead, most of the big cryptocurrencies have done nothing but record a lower high, which is a sign of an upcoming downtrend.
The next move may be lower, confirming a deeper downtrend.
But despite the lackluster performance of the major currencies, the smaller currencies did their job and rose despite the current market conditions that the crypto market is going through.
Not only did these small currencies rise, but they managed to record new highs.
Here we are talking about ten small-cap altcoins that trade across six different trading platforms, achieved All new high, these currencies are:
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- one thousand
Among these currencies, those that achieved a 100% increase, and as we have indicated, these digital currencies are small in terms of the total market value.
The ten currencies referred to and when combined together do not amount to one billion, but their sum together equals approximately 775 million dollars.
Aside from being a low altcoin, these altcoins have a few things in common, as they managed to make a comeback as Bitcoin and Ethereum stagnated.
There are a number of explanations about the rise of these currencies, for example, that these currencies have a small market value, and therefore they are a hotbed for pumping and unloading operations.
Within the aforementioned currencies there are two projects that are only $1 million in market value, so it takes a little money just to move the prices of these currencies.
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With such a low market capitalization any activity on these coins can lead to greater gains.
Whales know this and can use small altcoins to boost their holdings of Bitcoin and Ethereum before the final breakout.
It is said that profit taking flows from altcoins with small capitals in the end, to altcoins with medium capitals.
From there, the money eventually goes back to major altcoins like Ethereum, and then back to Bitcoin.
Perhaps this is the time when a bull market might start, and then the cycle repeats again.
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COMP coin is witnessing a rise of more than 250% for these reasons
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