The rest of the virtual currency market has now ridden the bitcoin rally. The total value of altcoins increased according to the data server CoinMarketCap for the week from $ 161 billion to $ 188 billion. While bitcoin strengthened by 14 percent in seven days, the second most common ether is an increase of 16 percent. However, in addition to XRP, litecoin also jumped out of the ten most widespread “coins”, by thirty percent.
“Altcoins usually move in the same direction as bitcoin, but with greater intensity,” he wrote Twitter cryptospeculator Alex Kruger. His words would also apply to any price corrections.
In terms of distance from historical highs, altcoins have more room to grow than bitcoin, which is enough to strengthen by about ten percent to overcome the historic $ 19,600. Other virtual currencies of the ether type are less than half of their record values.
However, unlike competing coins, Bitcoin enjoys a reputation that makes it a potential digital gold. Thus, a kind of safe haven in times of uncertainty in the financial markets.
The dominant cryptocurrency therefore also benefits from significant investments from companies such as Fintech Square or business-analytical MicroStrategy, which are taking bitcoin as insurance against possible inflation at a time of extremely relaxed central bank policy. In addition, according to proponents of the digital currency, bitcoin can be a so-called diversifier in times of uncertainty, increasing the diversity of the portfolio.
But as Bloomberg points out, the world of cryptocurrencies is very unstable. Bitcoin has grown rapidly in the past, especially in December 2017 and then in mid-2019, but then fell sharply. Therefore, many analysts and investors are rather skeptical about cryptocurrencies. Due to the volatility of bitcoin, they consider its label as digital gold to be inappropriate.
XRP course development: