xrp cryptocurrency price

What Next For Bitcoin, Ethereum, BNB, Solana, Cardano And XRP?

Radical Bitcoin Upgrade Escalates Ethereum, Binance’s BNB, Solana, Cardano And XRP Rivalry After Huge Price Rallies
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The combined bitcoin and cryptocurrency market has lost nearly $1 trillion since November in a crypto price crash that has upset traders.

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The bitcoin price has collapsed from a peak of around $70,000 per bitcoin less than two months ago to a low of just over $40,000 today – a drop of around 40%. Meanwhile, all other major cryptocurrencies such as Ethereum, BNB, Solana, Cardano, and XRP lost a similar amount.

The crypto market’s drop from $3 trillion to $2 trillion, as measured by CoinMarketCap, comes after a period of explosive crypto-price growth that saw the market inflate from just $200 billion two years ago — and bullish traders are convinced that this latest crash is only a temporary setback.

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“Despite the severity of the recent downturn in the digital asset market, it was by no means unexpected,” said Mikel Morch, executive director of risk management at crypto hedge fund ARK36, in an email comments. “Previously, we warned that market uncertainty and weak technical fundamentals made a drop to as low as $40,000 entirely possible.”

“[Bitcoin has] “Looking ahead, if bitcoin makes a confirmed breakout of the December 4 low around $42,000, then a set of lows emerge in late September between $39,600 and $40,700,” said Nicholas Cooley, strategist at DailyFX, via email. “

The recent crash in cryptocurrency prices, wiping out billions of dollars from the bitcoin and cryptocurrency market came within hours, after it was revealed that the US Federal Reserve could accelerate its planned interest rate hikes for 2022 and start shrinking its massive balance sheet — something that weighed heavily on it. In the stock markets, too.

“Following the release of the Federal Reserve’s December meeting minutes, which indicated a more decisive move to pare its expansionary monetary policy to tackle inflation, negative investor sentiment caused bitcoin to lose its key $46,000,” Morsch said. “Once this support was breached, liquidations followed within minutes. For a few weeks now, we have clearly been in a downtrend and there are no indications of a decisive reversal in sight.”

The cryptocurrency price crash comes nearly six months after the price of bitcoin was hit hard by China’s crypto crackdown, and Tesla CEO Elon Musk has been hit with confidence looking like he’s screwing up bitcoin. Bitcoin price reached as low as $29,000 in late July before rebounding and recovering above its previous high.

There are “amazing similarities between current price action and market action between mid-May and August that give reasons for cautious optimism over the medium term,” Morsch said. “A bounce back to around $47,000 in the next few days could confirm this hypothesis while further losses would largely negate it. In any case, only a clear break above $50,000 would signal a major trend reversal and investors should be careful.” Mindful of the inherent volatility of the digital asset market.”

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Other bitcoin and crypto investors are unconcerned about the recent downturn and are confidently anticipating a “strong recovery” in prices.

The Fed caused an “unexpected sell-off in Wall Street and the cryptocurrency market, with some traders seeing such a move as endangering liquidity that has benefited many asset classes, including bitcoin,” Nigel Green, CEO, Nigel Green of DeVere Financial Advisory and Asset Management Group, in the comments sent via email.

“However, I believe we will see a strong Bitcoin bounce as the dust settles. This will then boost others in the crypto market” – such as Ethereum, Binance’s BNB, solana, cardano, and XRP – “because Bitcoin and other cryptocurrencies are widespread shield against inflation.

Over the past year, the likes of Ethereum and its biggest rivals BNB, solana, and cardano from Binance have outperformed the price of bitcoin. The price of Ethereum has increased by 165% over the past year despite the recent crash in cryptocurrency prices. Solana, now the fifth largest cryptocurrency by value, surged 6500% in January 2021.

“Bitcoin has underperformed not only the crypto space over the past few weeks, with a whole lot of altcoins… posting huge gains,” said Nicholas Cooley of DailyFX. “Bitcoin’s market dominance is now just under 40% compared to just under 70% this time last year.”

While many bitcoin and cryptocurrency investors are confident that bitcoin and the broader crypto market will rebound, others see continued high volatility in the cryptocurrency markets as a problem to be resolved.

“Whatever the merits of cryptocurrency, such wild volatility will prevent it from displacing traditional currencies anytime soon,” AJ Bell investment manager Ross Mold said by email.


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