Analysts: Crypto market is grasping to a straw
“After a sharp decline in bitcoin and most altcoins prices last week, many had their hopes for BTC’s current ability to go above $8,000, and it looks like it succeeded to do just that,“ reported a team of FxPro analysts to LetKnow.News.
“It feels like the
crypto market has managed to cling to a practically invisible straw,” they say.
altcoins, ETH is currently trading above $182, partially recovering from a dip from $220 to $150 last week.
“Maintaining positive dynamics significantly strengthens the chances for Ethereum (ETH) to return to the area of recent highs of $230 in the coming days in case of growth. Thus, the recent correction looks rather fleeting, and speculative demand in the market is still high,” experts believes.
At the same time, the BTC Greed and Fear Index is now at 38.
“This indicates an approaching depletion of the momentum of demand, showing a rather sharp recovery from the levels of “extreme fear” when the index fell to 12 at the end of last week,” FxPro points out.
Also, the flow of news about the falsification of crypto-exchanges of trading volumes does not dry up.
“This uncomfortable truth has been revealed a long time ago, but market participants still prefer not to take seriously these facts,” the company said.
According to the
Blockchain Transparency Institute, about 90% of the volumes are fake, while the most honest crypto exchanges are Coinbase, Poloniex and Kraken. If the daily trading volume is not $61 billion, but $ 6billion, then it becomes clear how vulnerable digital currencies are to manipulation.
We should also pay attention to the cost of ZCash (ZEC), which is now even lower than the “crypto winter” levels. The coin is trading at around $39 and is now considered one of the most undervalued on the market.
“New data showed that cryptocurrency has problems with anonymity: you can determine the IP address of a full node in transactions, which raises fundamental questions for the project. Probably for precisely these reasons, cryptocurrency is not being bought back at current lows, ” analysts suspect.
Once the revolutionary XRP project is also going through hard times, as it turned out that the XRP
token itself is not used for international transactions. The price of a coin cannot break away from 25 cents level, so the company's management is trying every possible way to breathe life into the project through grants and investments. For example, it became known that Ripple bought the Icelandic crypto company Algrim in order to secure an XRP liquidity channel in the EU.
“The problem is that the longer crypto projects try to find ways to enter the traditional market, the more chances are that the same traditional market will update its own technologies. In the end, the cryptocurrency market is acting as a global casino where very few are going to succeed, while the rest will have to become history,” the experts summed up.