Although cryptocurrency continues to battle the minds of everyday people, its success cannot be ignored. Despite taking a massive dip in the overall market cap, things are rebounding. Over the past five days, cryptocurrency trading has picked up in volume again. As a result, the market cap has recovered US$25bn in losses without any problem. This goes to show how resilient this industry truly is.
Spectacular Growth for the Cryptocurrency Market Cap
Whenever the overall market cap shrinks, people tend to panic a bit. Given Bitcoin’s recent price drop, that is not entirely surprising by any means. After all, if Bitcoin loses value, so will the other coins. Interestingly enough, the BTC price drop allowed the Bitcoin Dominance Index to grow back to nearly 50% these past few days. Things have changed once again in the cryptocurrency world, that much is evident.
More specifically, the overall market cap grew back to US$86bn, compared to under US$60bn a few days ago. That in itself is quite a remarkable feat. It is not uncommon to see such major swings in cryptocurrency, though. The positive momentum has resulted in value gains for Bitcoin and Ethereum. Other coins are also doing quite well, including the likes of Stratis. Even XRP is rising in value again, after a week or two of utterly bearish momentum.
Even though the Bitcoin price is on the rise as well, the Bitcoin Dominance Index is back to below 45%. This goes to show there is still a lot of portfolio diversification going on right now. Traders and investors are not taking the risk of putting their eggs in the same basket ever again. Bitcoin has a lot of momentum in its favor, but things can go haywire in a heartbeat.The latest crash illustrated that all too well, unfortunately.
All things considered, things are looking quite positive for cryptocurrency as a whole. This does not mean we will see indefinite upward price momentum either, though. Now that Chinese exchanges are resuming crypto withdrawals, things can only get better from here on out. However, there will always be market volatility to take into account. The overall market cap could surpass US$100bn or drop back to US$50bn in a week from now. No one knows for sure, yet that is part of the excitement.