Bitcoin and other crypto currencies are gaining popularity as the second quarter draws to a close.
Crypto reached $2 trillion in value and continues to show remarkable resilience, even amid global uncertainty.
Bitcoin’s early losses have been completely recouped as of Tuesday. BTC plunged from $47733.40 down to $35070.10 within the first 30 day of the year, and it has not recovered since.
At Monday’s all-time high of $47,765, market leader bitcoin broke free from the confined $34,000-$44,000 bracket it had been trading in for the majority of 2022.
As a result, the cryptocurrency’s price has increased 18% since March 21, when it was trading at $47,899 on Coingecko. This is a consistent rally from its low point of near $40,000 in March. On Tuesday, the highest crypto traded at $47.899 on Coingecko. That’s 16% higher than in the past seven days.
Bitcoin’s positive sign
Despite the favorable market action, analysts cautioned that it is premature to declare the end of Bitcoin’s price volatility.
The volatility will not be a factor in the market experts’ judgment until at least one week has passed since the current price advances.
Its relative stability, at least compared to recent performance, stands in stark contrast to stock markets, traditional currencies, and even safe-haven gold, which have all been roiled by Russia’s invasion of Ukraine and the Federal Reserve’s tightening.
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Source: TradingView.com| Source: TradingView.com
Coinglass reports that the volatility of futures trading websites is about 4% for 30-days. That’s more than two-thirds less than June 2021. On March 16, this year’s high was 4.56%.
This indicator reveals a currency’s deviation from its own regular norms, and bitcoin has continued to see wild swings, including a 17% spike on March 1.
However, it is far less volatile now than in 2021 when it could fluctuate by as much as 40% per day.
Reaching the $2 Trillion mark
According to analytics firm CoinMarketCap, the cryptocurrency market’s total worth exceeded $2 trillion on Friday.
This is to put things in perspective: On Nov. 10, bitcoin reached $69,000 and briefly crossed $3 Trillion.
The slow climb back above $2 trillion has been supported by the proliferation of coins and tokens – CoinMarketCap now lists 18,511 cryptocurrencies, an increase of roughly 5,000 since November.
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Bitcoin remains the most popular cryptocurrency. However, it has seen its market share slowly decline from 70% to 42% in early 2021.
Numerous cryptocurrency investors believed they could discern bitcoin’s fate in advance of the temperamental cryptocurrency abandoning them financially.
During this time, Ethereum (ETH), reached a daily peak of $3,431 an unit, just like Bitcoin (BTC).
At present, Bitcoin (BTC) holds approximately 40.3%, and ETH (ETH) has 18.1%.
Featured image by Vauld. Chart from TradingView.com