The crypto markets have been in turmoil lately, with the continued accumulation of bitcoin in particular.
This is according to a recent report from Luno, which states that after making new all-time highs last week, the price of bitcoin has subsequently declined due to a round of liquidations with significant profit-taking.
Despite this, the report also states:
“Long term holders are accumulating more Bitcoin which could provide strong support for the Bitcoin price going forward”.
Yesterday, however, following Fed Governor Jerome Powell’s speech, purchases returned in the crypto market, with the price of bitcoin back around $59,000, which is very close to the all-time high.
However, the report also points out that bitcoin’s powerful price rise in recent days has not been followed to the same extent by the other major cryptocurrencies, seeing that in March it appears that whales in particular focused their attention on bitcoin and not on altcoins.
Incidentally, on the subject of altcoins, the same report points out that current market movements indicate that investors are now more interested in new crypto projects, rather than in what are termed the “2017 tokens”.
For example, if we exclude Bitcoin and Ethereum, which follow their own path, and Tether, whose price remains fixed, we find Cardano, Binance Coin, Polkadot, Uniswap and Chainlink in the top ten cryptocurrencies with the highest market capitalization, projects that in 2017 either did not exist or were in their infancy.
Nevertheless, we also find XRP and Litecoin, but ranked lower on the list. Other “2017 tokens” such as Bitcoin Cash and Stellar, are in the bottom positions, whereas Monero and EOS have plummeted beyond 20th position.
Luno’s UK Country Manager Sam Kopelman commented, saying:
“I believe that we will continue to see a rapid adoption of crypto globally, as more people look towards a financially secure future. The shift of interest to new projects reported in our market analysis this week is a reminder that consumers want the freedom of choice and multiple options when it comes to their finances”.