A brief respite has arrived in the crypto markets, with Bitcoin rebounding to nearly $80,000 and major tokens like XRP and Dogecoin surging 10%.
Relief Rally in Crypto Markets as XRP and Dogecoin Surge 10%
The total crypto market cap has pulled back to levels seen in early November, when ‘Donald Trump‘s victory triggered a break through a resistance level.’ This recent trend is a relief rally for the cryptocurrency market.
Ripple is a real-time gross settlement system (RTGS) developed by Ripple Labs Inc., which allows for instantaneous, low-cost cross-border payments.
XRP is the native cryptocurrency of the Ripple network, used as a bridge currency to facilitate transactions between different currencies.
With a market capitalization of over $100 billion, XRP is one of the top 5 cryptocurrencies by market value.
It is known for its fast transaction processing times and low fees.
Bitcoin Rebound
Bitcoin (BTC) clawed its way back to almost $80,000, staging a relief rally after dipping below $75,000 late Monday and spurring a run-up in major tokens. The price drop was significant, with bitcoin falling by over 20% at one point, but it has since rebounded.
Bitcoin is a decentralized digital currency that uses cryptography for secure financial transactions.
It was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
Bitcoin operates independently of central banks and governments, allowing peer-to-peer transactions without intermediaries.
The total supply of bitcoin is capped at 21 million, and new units are generated through a process called mining, which involves solving complex mathematical problems.
Dogecoin and Other Major Tokens Follow Suit
Dogecoin (DOGE), BNB Chain’s BNB, XRP, and Cardano’s ADA rose as much as 10%, alleviating some of the past 24 hours’ losses. The broad-based ‘CoinDesk 20 (CD20)’ added nearly 9%. This surge in prices is a welcome change for investors who have been watching the market with concern.
Dogecoin is a decentralized digital currency created in 2013 by Jackson Palmer and Billy Markus.
Initially, it was intended as a parody of the hype surrounding other cryptocurrencies like Bitcoin.
However, it gained popularity due to its unique features, such as its community-driven approach and charitable initiatives.
Dogecoin's value surged in 2021, making it one of the top 10 cryptocurrencies by market capitalization.
Its success can be attributed to its strong online presence and the enthusiasm of its community.
Market Sentiment
Crypto-tracked futures amassed over $1.2 billion in liquidations on Monday as major cryptocurrencies slumped more than 20% at one point, setting the stage for a bounce as traders cut short positions and reversed overextended selling. Market sentiment has returned to the extreme fear zone of ’23,’ which is significantly higher than what we see in equities.
Expert Insights
According to Jupiter Zheng, a partner at HashKey Capital, investors seeking safe havens may look to buy the dip on Bitcoin if it can show some relative strength against traditional assets during an eventual recovery period in the short term. Alex Kuptsikevich, FxPro’s chief market analyst, notes that the market looks ’emotionally oversold’ but requires catalysts for a reversal.
Market Outlook
The relief rally in crypto markets is a welcome change for investors who have been watching the market with concern. While the market sentiment remains cautious, it is essential to stay informed and adapt to changing market conditions. As always, it’s crucial to conduct thorough research and consult with financial experts before making any investment decisions.
Cryptocurrency Market Update
The cryptocurrency market has seen a significant relief rally in recent days, with XRP and Dogecoin surging 10% in value. The surge is attributed to the market’s pullback from early November levels, when ‘Donald Trump‘s victory triggered a break through a resistance level.’ Bitcoin rebounded to nearly $80,000 after dipping below $75,000, leading to a rise in other major tokens.
Key Takeaways
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Bitcoin rebounded to nearly $80,000 after a dip below $75,000.
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Dogecoin and other major tokens rose as much as 10%.
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The total crypto market cap has pulled back to levels seen in early November.
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Crypto-tracked futures amassed over $1.2 billion in liquidations on Monday.
- coindesk.com | XRP, Dogecoin Surge 10% as Crypto Markets Stage Relief Rally
