The market was in a good mood again on Tuesday, and this is helping the values of crypto-currencies to push up. Bitcoin (BTC -2.40%) has gained as much as 3.5% over the past 24 hours as of 2 p.m. EST, but is still down 4.7% over the past week. Its smaller rival, Ethereum (ETH -2.64%), was up 3.2% today, but lost 13.1% over the past week.
Silvergate Capital (SI 13.48%), which is a digital finance company, also saw its value increase by up to 13.2% in trading today, although it was up 10.9% as I write these lines. Why is the digital currency market booming today?
Last week was one of the worst we’ve seen in the cryptocurrency industry, with TerraUSD losing its peg at $1 and eventually crashing both the stablecoin and Terra (LUNA ). This led to a wave of selling and the momentary loss of the peg of several stablecoins. On the same subject : Crypto The Sandbox price prediction: Will SAND hit $10 in May 2022?.
Some stability returned to the market over the weekend, and that brought some confidence back to investors. The values of cryptocurrencies like Bitcoin and Ethereum are on the rise again, and altcoins are also climbing.
As quickly as the crypto market fell last week, we have to keep in mind that it is much more mature than it was a few years ago. Thousands of developers have moved into the industry, building on cryptocurrencies like Bitcoin and Ethereum, and these companies are much more entrenched than in the crypto winter of 2017. Long term, I think the future is brighter than a few years ago.
Volatility continues to be the norm in cryptocurrencies, and today is another reminder of that. But I think it’s important to keep in mind what’s being done here with payment systems and digital projects that are now being built on top of the blockchain. Read also: Cryptocurrency Price Prediction: Polkadot, Ripple, and Shiba Inu. If this continues, it should help Bitcoin and Ethereum in the long run.
I continue to be bullish in the cryptocurrency market, but there will be volatility in the meantime. A lot of money has been made and lost simply by trading cryptocurrencies over the past year, and we are entering a new phase where it is utility, not trading, that will likely generate the most value. This could lead to some investors dropping out of the market while others move in, which isn’t bad as the industry matures.
A bear market like this can also be a buying opportunity for investors looking to stay for the long haul. Big companies and big projects are building in a bear market, so the cryptocurrencies and blockchain-built projects that can thrive now will be the projects we’ll be talking about a decade from now, as long as investors are willing to buy. and maintain quality digital assets.
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