Cryptocurrency market has started to show signs of a slight but stabilising recovery in early morning trading (AEST GMT +10) on Saturday after the Friday bloodbath wiped billions off the US $2 trillion crypto market capitalization.
The world’s biggest cryptocurrency BTC has managed to crawl above US $50,000 from Friday's low of US $47,000. Among the other 9 variable-price digital coins in the Big 10, Ether (ETH) is just above US $2,300, ripple (XRP) US $1.15, Binance Coin (BNB) US $520, cardano (ADA) US $1.13, ChainLink (Link) US $34, Dogecoin (DOGE) US $0.24, Stellar (XLM) $0.44, Vechain (VET) US $0.19 and Litecoin (LTC) US $238.
The slight recovery in the crypto market was likely given a leg up in spillover by the rise in US stocks Friday afternoon after solid economic data reversed a Wall Street decline while the greenback fell, passing some of its safe haven appeal back to gold (XAU/USD) towards US $1,800 level. Besides softer US dollar, falling Treasury yields and the prospects of correction in equities have attracted investor interest in bullion. Meanwhile, strong data lifted the euro (EUR/USD) while crude oil also moved 1% up but failed to reverse the negative trend of the week. .
The losses on the cryptocurrency market is still widespread and the alignment of several risk factors remains intact at the moment.
The past week has been a costly lesson for the rookies who where stuffing their wallets with ‘upside momentum’ crypto coins, thinking valuations for everything they bought could only climb. The flush crash also showed novices the usually shrugged-off intrinsic vulnerability of cryptocurrencies to possible government regulations.
Further short-term recovery is still likely many technicians, as well as old-school fundamental investors prefer to hunt bargains and value in a falling market after signs of panic, or capitulation by the bulls. Although trying to time the market is a fool’s game, the risk factors, especially when it comes to the seasonality have historically been significant.
Risk Warning: Cryptocurrency is a unregulated virtual notoriously volatile instrument with a high level of risk. Any news, opinions, research, data, or other information contained within this website is provided for news reporting purposes as general market commentary and does not constitute investment or trading advice.
