As was to be expected the weekend brought mixed results for the crypto currency markets with many trading sideways although there was a general improvement all around barring one or two exceptions. Bitcoin actually exceeded the $11,000 mark on Saturday but then fell back to the mid $10,500’s during Sunday and continued flirting with that level with very minor movements all round. However it seems that a push towards the $11,000 mark is again on in the next few hours and according to analysts, this could mean that the $12,000 mark is definitely not far off.
Another huge gainer over the past few hours was Ethereum Classic which continued rising exponentially and was trading at well over $36 on Monday morning. Although Ethereum was also rising after having dipped slightly over the weekend, it seems to be struggling to reach the $1,000 mark and has been mired between $900 and $950 for several days with no real sign of a breakout appearing anytime soon.
Bitcoin Cash has also been showing signs of life recently and once again traded at above the $1500 mark for a long period over Saturday but then retraced slightly to the $1450 mark over the course of Sunday. In fact Sunday was quite a stagnant day for most crypto currencies as most continued to languish below their Saturday highs. One of the casualties in this respect was Ripple which continues to mystify the market as it is still trading in a very small range which is basically between the $1.07 and $1.10 mark demonstrating that it has little appetite to rise beyond the $1.22 mark – last reached two weeks ago.
Other crypto currency performance was also rather mixed with Litecoin hanging around the $220 mark although it is seemingly ready for another push beyond the $250 mark soon. Dash is continually moving around the $670-730 direction – a very far cry from its all-time high of $1500 which it does not look like achieving anytime soon. Other alt coins such as Stellar and NEO seem stuck in their respective price ranges with the former now close to the $0.50 mark and the latter moving around the $130 mark. Crypto currency exchange Etoro is about to add NEO in the next few hours so that could see a corresponding rise in price.
Throughout January, the cryptocurrency market experienced one of the worst corrections in history, as most cryptocurrencies declined by around 70 percent from their all-time highs (ATHs). Since early February, the cryptocurrency market has continuously recovered, but major cryptocurrencies with robust infrastructures, community support, and network effect have had an edge over other alternative cryptocurrencies. However progress has been extremely slow and many currencies are still more than 50% away from their all-time highs.
During a recovery period, wherein new investors and traders enter the space as the market begins to see gains, cryptocurrencies with strong network effect such as bitcoin has a strong advantage over other alternative cryptocurrencies. Most investors who exited the market as the price of cryptocurrencies fell did it out of panic and fear. Additionally all the talk that the crypto currencies would recover almost immediately proved to be wishful thinking as several investors are still staring at huge losses in their portfolios.
Most investors that are entering the space now are experiencing FOMO, or fear of missing out. Hence, if FOMO is driving new investors into the scene, especially high profile and large-scale institutional investors, the go-to investment is bitcoin.
As investment advisor Ross Gerber said, the demand for bitcoin from Wall Street and big buyers has been increasing over the past week.
The demand for bitcoin and other cryptocurrencies has been on the rise in the South Korean cryptocurrency market, as the “Kimchi Premium” reappeared on major cryptocurrency exchanges including Bithumb and Korbit. Although the premium is only about 2 to 3 percent, which is significantly smaller than its rates in December, at one point in February, premium rates disappeared in South Korea due to a lack of demand.
South Korea is an important market for alternative cryptocurrencies like EOS, Qtum, Cardano, Ethereum, and Ripple. South Korea’s cryptocurrency exchange market only accounts for around 6 percent of global bitcoin trades but for altcoins, the country remains as one of the largest markets.
UpBit, the only cryptocurrency exchange in the country that supports over a hundred cryptocurrencies, has consistently been the second largest cryptocurrency exchange in the global market, behind Binance.
Since the cryptocurrency market experienced a major correction in January, most analysts in the South Korean market did not expect the market to begin its recovery period in February. But, demand is already growing in the local market and analysts expect it to be reflected upon the global market in the next few weeks. Still, the market does appear to be recovering very slowly.