Amid the looming fervor over the historic Bitcoin roll-out in El Salvador, the cryptocurrency market recovered to its highest level in almost four months on Monday afternoon, with a number of so-called altcoins (or cryptocurrency alternatives to Bitcoin and Ether) rising to meteoric new highs and the heat up of gains that JPMorgan analysts have warned suggests the market may be ripe for a correction.
Bitcoin’s market share is at “uncomfortably low” levels – a historic sign of the market … [+]
The price of Solana’s Sol tokens soared nearly 19% to an all-time high of $ 164.47, continuing a week-long rally fueled by cryptocurrency support for vibrant non-fungible tokens.
Other top tokens leading the rally were Ripple’s XRP and Chainlink – up 7% each – while recently soaring cryptocurrencies like Cardanos Ada and Dogecoin fell around 3% and 1%, respectively.
Although Bitcoin has lagged the broader market in recent weeks, Bitcoin’s price rose about 2% on Monday, topping $ 52,000 for the first time in nearly four months.
Nigel Green, the CEO of the $ 12 billion wealth consultancy DeVere Group, assessed the anticipation of the introduction of Bitcoin as legal tender in El Salvador on Tuesday as “a milestone in the development of the digital currency”.
However, in a Monday note to clients, JPMorgan CEO Nikolaos Panigirtzoglou said retail investors have been pushing altcoins to new highs since early August, pointing out that the market share of Bitcoin and Ethereum has fallen from 78% on Aug. 4 to around 67% on a dwindling institutional Interest in funds linked to the top two cryptocurrencies.
He points out that Bitcoin’s market share in particular looks “inconveniently low” in historical comparison – a likely expression of “froth and mania by private investors” as opposed to sustainable profits.
“The August rally in non-fungible tokens and the increase in decentralized financial activity have contributed not only to Ethereum, but also to alternative cryptocurrencies that are trying to facilitate or facilitate smart contracts like Solana, Binance Coin and Cardano,” Panigirtzoglou said on Monday. “The previous phase of retail investor mania for cryptocurrency markets was between early January and mid-May … and retail investors are making the cryptocurrency markets look frothy again.” After bouts of retail investment craze in January and May, crypto markets collapsed about 13% and 50%, respectively % a.
All in all, the value of global cryptocurrencies rose nearly 2% on Monday to a total of around $ 2.3 trillion, marking its highest level in days after prices tumbled from all-time highs in early May, according to crypto data website CoinMarketCap.
In just a few months, cryptocurrency markets collapsed more than 85% after altcoins’ market share hit an all-time high of 55% in January 2018, Panigirtzoglou notes.
Along with the excitement surrounding NFTs, ongoing institutional acceptance and heightened inflation concerns have helped the cryptocurrency market reduce losses since regulation in China crashed nearly 50% in early May. The market is still about 10% below its all-time high, but it has soared more than 45% in the last month. According to a study by the crypto hedge fund Nickel Digital, 49% of asset managers (who, with total assets of 275.5 billion, believe the fastest pace in almost 13 years.
Solana Overtakes Dogecoin as Ethereum Price Hits $ 4,000 for the First Time since $ 1 Trillion Crypto Crash (Forbes)
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