The cryptocurrency market is adding 0.2% in the last 24 hours to $1.63 trillion, experiencing some pause or rebound after a prolonged drawdown. Buyer interest in 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 came at the expense of a rebound in US equities, where selloff hunters thought their time had come.
The cryptocurrency market capitalisation without Bitcoin
Bitcoin
Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight.
Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight.
Read this Term became less than 1 trillion last Saturday, and this round level now acts as near-term resistance. At one point on Monday, Bitcoin was down to $33K, but at the late US session, and now trades near $36.4K.
Yesterday's drawdown almost closed the gap in July and also came from the lower boundary of the downward channel. The latter indicates that despite the prevalence of bears, the market is not yet ready to accelerate the decline.
Bitcoin is gaining 2.8% in 24 hours, but most altcoins are losing ground. So, yesterday's rebound in bitcoin and the positive dynamics of the crypto market are more correctly attributed to technical factors: crypto investors are exiting altcoins to more liquid BTC, forming temporary bounces, but nothing more.
The nearest target for BTC downside is $32.3K to close the gap entirely. However, it is worth being prepared to retest the July lows of $29.5-30K. Without support from the stock markets, these levels may not hold for long either.
Ether also saw a bounce yesterday towards the end of the day, making it clear that the market is far from surrendering. After seven days of collapse, the primary altcoin managed to close Monday with a tiny gain.
Nevertheless, there are no signs of breaking the downtrend yet. Moreover, a death cross is also forming over the ether, as the 50-day moving average is now only a couple of days away from crossing the 200-day from the top down. This signal is often followed by a new bearish attack.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.
