Bitcoin Pauses To Build Momentum For Massive Bull Breakout
The adverse economic events of the year have revealed the global economy’s susceptibility to natural disasters.
The effects of the COVID-19 pandemic have also divulged that a stock market in the dumps is bad for investors that trade cryptocurrency in spot and derivatives platforms like PrimeXBT for profit. Earlier in the year, Wall Street crashed and took crypto assets along, creating doubt that these digital assets were hedge assets in a falling stock market.
The coronavirus pandemic not only dealt a low blow to equities and crypto-assets markets, but drowned the oil market as well.
The sad state of the market led to a decline in investment opportunities, leading investors to safe-haven assets such as gold and Bitcoin. Much of the angst in the market is attributed to emotional turmoil and anxiety amongst investors because of the ongoing exceptional circumstances.
Economies are opening up, quelling fears of a protracted lockdown period and an unsalvageable economy. Consequently, despite its drop to the $5000 a coin mark in March, Bitcoin has picked up momentum alongside gold and is now comfortably resting at $9,000 per coin price since May.
The recovery that the king of cryptocurrencies has made has become a source of relief for the indefatigable industry, but pundits are wary that Bitcoin has been at a standstill for too long.
Bitcoin at a standstill
Bitcoin’s infamous price volatility is now at a three-year low, keeping its price steady at the $9000 to $9500 mark according to data streams from PrimeXBT. .
The crypto asset’s volatility levels have not been this steady since its 2017 bull run. Despite its inability to scale over the $10,000 wall, the currency’s HODLers are not giving in to the critics’ calls to sell off the asset.
Peter Schiff, a famous Bitcoin bear, recently learned that these crypto industry veterans are in the market for the long run when he took out a Twitter survey on the subject.
His question to these old-timers was “How much longer does the price of Bitcoin have to stay below $10,000 before you will throw in the towel and sell?”
A massive 57.5 percent of the survey’s 28,168 respondents said that they would take Bitcoin to the grave. 13.4 percent of them said that they would store their Bitcoin for at least a decade, while 15.1 percent would throw in the towel after a year.
The lack of volatility in Bitcoin has turned out to be a positive sign for a variety of altcoins. In the last few weeks, crypto-assets such as Tezos (XTZ), Chainlink (LINK), and Cardano (ADA) have been rallying.
Crypto investors can now trade these assets for short time trading benefits. The lack of price volatility has also been prevalent with Ether ETH, making it harder for investors to trade with it. Unlike BTC, ETH does not have a halving event on the horizon, a fact that has contributed to BTC’s stability.
Altcoins on the rise
ETH however has impressive fundamental parameters and its decentralized finance sector is booming. Ethereum’s transactions are also rising thanks to Tether’s (USDT) increasing popularity.
Tether is a stablecoin built on the ETH’s blockchain and is currently responsible for over 80 percent of all Bitcoin trades.
USDT transactions have risen by 450 percent, pushing the Ethereum network’s activity to a multi-year high. Despite its low volatility, Ethereum is showing signs of long-term growth as it prepares to launch Ethereum 2.0.
Tether is such a success that it is now third in the crypto assets by market capitalization. The world’s most popular stablecoin’s market cap has gone as high as $10 billion, while its valuation has grown by 144 percent.
Chainlink’s LINK has had an impressive run, its value rising by an incredible 1,000 percent in a year. The Ethereum blockchain digital currency is a major player in decentralized finance. A bridge payment option between blockchains, LINK prices have risen from its initial coin-offering price of $0.11 to $6.49 per token.
Cardano has attained an over 85 percent increase in value this month, becoming the sixth largest crypto asset by market cap.
ADA the other altcoin on a bull run has just had a profitable Shelley upgrade, and its association with DeFi projects has been beneficial to it as well.
Tezos has doubled in value this year, and its rally has zero signs of a slowdown. The Tezos platform is a fantastic new project construction environment because of its proof of stake algorithm. It is less resource-intensive and more scalable than Ethereum is.
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