June 8 2024

The New Underdog of Crypto Market


The uncertainty surrounding cryptocurrencies such as bitcoin remains high. But not all coins lose value at the same rate; investors should diversify. A coin even takes off – thanks to Elon Musk. If you want to start bitcoin trading check the benefits of bitcoin lending.

The big whirlwind on the crypto market is far from over. Bitcoin and Co. have not recovered from their crash last weekend. Instead, most cryptocurrencies are trending sideways. Bitcoin, the largest of them by market volume, is hovering around $42,000.While some market observers see the low prices as an entry opportunity, others fear that the market may not recover as quickly in the long term. “Cryptocurrencies run more or less in parallel in downward phases,” says Dieter Falke, Managing Director of the investment company Quant. Capital describes the crypto market course in the not-so-powerful scenario.

Like other asset classes, cryptocurrencies have recently slumped significantly in the wake of high inflation rates and the approaching turnaround in interest rates. No wonder because cryptocurrencies, like tech stocks, have significantly benefited from the cheap money from central banks. If this is now reduced, the crypto courses could suffer. However, Charlie Morris, the founder of ByteTree, specializing in data and digital asset analysis, sees it differently. He believes the current upcycle in the crypto market is far from over, so the recent crash is just a pause. “Investors buying Bitcoin in 2022 will be glad they did.”

Musk’s action drives Dogecoin.

The respective problems of the individual coins add to the general uncertainty—the only current exception: the Dogecoin. Once again, the cryptocurrency price, which started as a fun currency, has skyrocketed after crypto fan and Tesla boss Elon Musk tweeted about the coin. Because Musk is delivering on what he promised in December, Tesla fan articles can now be paid for with Dogecoin in the local online shop. As a result of the news outbreak, the cryptocurrency price rose by 18 percent. This increase is not a high price gain for a cryptocurrency, but it is significant in the current market environment.

Others, however, have less momentum at the moment. This swiftness applies, for example, to Ether, the second-largest cryptocurrency based on the Ethereum blockchain. It has not lost quite as much as Bitcoin. However, experts fear that Ether could soon lose its technological edge and overtake other cryptocurrencies.

Will Ether and Ethereum now be left behind?

Analysts at the US investment bank JP Morgan warn that in the crucial area of ​​decentralized financial markets (Defi), which Ether previously dominated, others are now catching up.

According to Bloomberg analyst Nikolaos Panigirtzoglou”The scaling needed for the Ethereum network to maintain its dominance may come too late”. The Ethereum network is currently rebuilding its blockchain and making sure that more transactions can be carried out faster. However, other blockchains could already do this according to “British bitcoin profit”.

Polkadot, Solana, and Avalanche are considered promising.

According to JP Morgan, these up-and-coming cryptocurrencies include Polkadot, Solana, and Avalanche. Similar to Ethereum, they are all able to process virtual contracts, so-called smart contracts, via the blockchain and enable trading with the increasingly popular NFTs (non-fungible tokens). At the same time, the networks are smaller and therefore more agile than Ethereum.

Market observers expect that the selection of coins could become increasingly important as the market environment weakens. The market as a whole tends to follow Bitcoin. However, price movements are becoming more differentiated. If Bitcoin falls, it does not automatically mean that other cryptocurrencies also have to lose value as much. Traders should analyze everything before investing.

What is NFT’s

NFTs have experienced a real hype in the past year – this can also be observed in the prices. But what do you mean by NFT, and where and how could you invest in them?

The complete form of NFT is “Non-Fungible Token” – loosely translated as “non-replaceable tokens”. One of the most sought-after products on the crypto market in 2021 was so-called NFTs, along with numerous coins. Some of them experienced veritable course fireworks. For inexperienced investors, the question arises as to what precisely an NFT is and how one can buy one because it’s not that easy at the moment. A guide based on an example.


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