The cryptocurrency market has gained another 1.8% over the past 24 hours, bringing its total capitalisation to $2.28 trillion. The index has been choking on growth for the past three weeks at the $2.3 mark, so further rise promises to strengthen the bullish case, at least in the short term.
The cryptocurrency fear and greed index has jumped to 45. This is a fear territory, but very close to neutral territory. Judging by the continued demand for risky assets in traditional markets and the positive performance of cryptocurrencies
Cryptocurrencies
Cryptocurrencies represent nearly counterfeit-proof digital currencies that are built on blockchain technology. These can be obtained using cryptography or virtual currencies.Cryptocurrencies constitute decentralized networks, harnessing blockchain technology that crucially are overseen by a central authority. This makes cryptocurrencies unique in their function, placing them effectively outside the sphere of influence from any government or central bank.Such digital currency stems from encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can also accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while cryptocurrencies depict cryptographic methods and encryption algorithms.This includes public-private key pairs, various hashing functions, and an elliptical curve. By design, each cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.Consequently, these are also approved by a disparate network of individual nodes or computers that maintain a copy of the ledger. For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. Cryptocurrencies Go Mainstream2009 saw the rise of Bitcoin, which became the first blockchain-based cryptocurrency and has since risen to become the world's most widely traded and valued cryptocurrency.Since then, many other cryptocurrencies have been launched and grown in popularity in recent years. These are known as altcoins.Common examples of these cryptocurrencies are Ethereum, Ripple, Stellar, and Dash, among many others.Cryptocurrencies also promise a wide range of technological innovations that have yet to be structured into being.
Cryptocurrencies represent nearly counterfeit-proof digital currencies that are built on blockchain technology. These can be obtained using cryptography or virtual currencies.Cryptocurrencies constitute decentralized networks, harnessing blockchain technology that crucially are overseen by a central authority. This makes cryptocurrencies unique in their function, placing them effectively outside the sphere of influence from any government or central bank.Such digital currency stems from encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can also accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while cryptocurrencies depict cryptographic methods and encryption algorithms.This includes public-private key pairs, various hashing functions, and an elliptical curve. By design, each cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.Consequently, these are also approved by a disparate network of individual nodes or computers that maintain a copy of the ledger. For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. Cryptocurrencies Go Mainstream2009 saw the rise of Bitcoin, which became the first blockchain-based cryptocurrency and has since risen to become the world's most widely traded and valued cryptocurrency.Since then, many other cryptocurrencies have been launched and grown in popularity in recent years. These are known as altcoins.Common examples of these cryptocurrencies are Ethereum, Ripple, Stellar, and Dash, among many others.Cryptocurrencies also promise a wide range of technological innovations that have yet to be structured into being.
Read this Term as of this morning, this index could well continue to rise at the end of the day.
Bitcoin is trading near $49,000, returning to the highs of the last week and a half, adding 1.3% in 24 hours and 2.3% over seven days.
Technically, the first cryptocurrency managed to close noticeably above its simple 200-day moving average, which could spur demand from those buyers who were waiting for the battle for that important level to unfold.
The price of Ether is above $4K, which is also a positive signal for the entire crypto market. The situation looks like Ether staying above $4K and Bitcoin staying above the 200-day average is fuelling buying among smaller altcoins
Altcoins
Altcoins can be defined simply as any cryptocurrency that isn’t Bitcoin. Originally, Bitcoin was the first and only cryptocurrency, though this number has expanded to now include countless cryptos launched. Unlike Bitcoin, many altcoins have met varying levels of success, with the vast majority effectively ceasing to exist as tradable entities. Several however, have risen to rival Bitcoin itself.The most common altcoins include Ether, XRP, Stellar, Monero, Ada, and Dash, among others and are seen as major players in the crypto space.At the time of writing, there are over 5,000 altcoins in existence, with this number oscillating all the time. The two most paramount altcoins presently are Ethereum and Ripple and have developed into mainstays in the industry.In terms of structure, altcoins may differ from the Bitcoin network in any number of ways. This is often the primary reason for the existence of altcoins themselves.Altcoins ExplainedSince its launch, Bitcoin has been innovative and massively influential, however it does possess some issues that developers are still trying to fix with their own products. This was the primary impetus for the launch of several different altcoins. Over time, there have been altcoins developed that foster faster transactions, are less volatile, or are more private than Bitcoin.Altcoins also boast different economic models and their methods of distribution. Furthermore, their programming languages can be different, supporting the development of different kinds of applications. While many altcoins have been built with new technology and have sizable potential to change the world, many of them have been created as methods of grabbing quick cash, or even as memes.Still, some of the joke altcoins have still managed to gather a significant number of users and followers. The most prominent example of this trend is DogeCoin, a cryptocurrency inspired by the Doge meme.
Altcoins can be defined simply as any cryptocurrency that isn’t Bitcoin. Originally, Bitcoin was the first and only cryptocurrency, though this number has expanded to now include countless cryptos launched. Unlike Bitcoin, many altcoins have met varying levels of success, with the vast majority effectively ceasing to exist as tradable entities. Several however, have risen to rival Bitcoin itself.The most common altcoins include Ether, XRP, Stellar, Monero, Ada, and Dash, among others and are seen as major players in the crypto space.At the time of writing, there are over 5,000 altcoins in existence, with this number oscillating all the time. The two most paramount altcoins presently are Ethereum and Ripple and have developed into mainstays in the industry.In terms of structure, altcoins may differ from the Bitcoin network in any number of ways. This is often the primary reason for the existence of altcoins themselves.Altcoins ExplainedSince its launch, Bitcoin has been innovative and massively influential, however it does possess some issues that developers are still trying to fix with their own products. This was the primary impetus for the launch of several different altcoins. Over time, there have been altcoins developed that foster faster transactions, are less volatile, or are more private than Bitcoin.Altcoins also boast different economic models and their methods of distribution. Furthermore, their programming languages can be different, supporting the development of different kinds of applications. While many altcoins have been built with new technology and have sizable potential to change the world, many of them have been created as methods of grabbing quick cash, or even as memes.Still, some of the joke altcoins have still managed to gather a significant number of users and followers. The most prominent example of this trend is DogeCoin, a cryptocurrency inspired by the Doge meme.
Read this Term. Keeping key currencies above psychological marks fuels hopes that the market has not switched to bearish mode.
On the other hand, we remain wary of the crypto market outlook, noting that Bitcoin and Ether look like clinging to meaningful levels. The bearish scenario can only be cancelled if growth develops from current levels.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich
