1. PixelPlaygroundHome
  2. Web3 News

Why Cryptocurrency (why Cryptocurrency goes up and down at the same time)

• Web3 News • 67 views

Why Cryptocurrency

Why is Cryptocurrency immutable according to bitcoin? We know that Bitcoin is a peer-to-peer (unmanaged) payment method. The blockchain technology provides a new transaction mode – “decentralized network”, enabling anyone to conduct transactions and Exchange value without affecting security So, why do some people believe that digital assets can be a choice for the financial system? This is exactly a question that people need to consider: why Cryptocurrency is so popular. 1. It is not separable and cannot be replicated. 2. It is designed to adapt to different use cases. 3. It is secure, cost-effective, and easy to understand. 4. It is an open source tool, but due to its creativity, it is very easy to implement. 5. It is not difficult to use. 6. There are no other factors that pose risks to it. 7. It is easy to forge and easy to access. 8. It is simple but also difficult to expand. 9 It does not need anyone to do these 10, 10, this thing has been many times

why Cryptocurrency goes up and down at the same time

Cryptocurrency goes up and down at the same time

Why did Bitcoin and Ethereum rise and fall together in market performance? The answer is that when the two assets are different, prices rise and fall, but the prices of these two assets do not always increase in sync Firstly, investor sentiment is bullish. Because when investors start paying attention to an investment product, they will find a strong correlation with other financial products such as stocks, bonds, or gold; On the other hand, these traditional investment products also have a highly correlated phenomenon, so their volatility is much greater than that of stocks and other financial instruments

What if Bitcoin and Ethereum are the investment objects of the same type for these two currencies? We can see from the following figure:

(Source: BitcoinTreasuries data)

According to CoinMarketCap data, on December 22, 2019, after the total market value of all major virtual currencies reached a historic high of $645 billion, this number soared to over 8 trillion. During the same period, the overall valuation of the blockchain industry has reached as high as $2 trillion. The average yield in 2020 was only around 5%, which is less than 10% higher than the full year of 2019 and exceeds last year’s high

Nevertheless, as the relationship between the two Cryptocurrency still maintains a positive correlation trend, this situation often has a huge impact. The same thing applies to Bitcoin. Since March this year, Bitcoin and Ethereum have respectively achieved an increase of about 50% and 70%, and both are in the rising cycle

However, in recent quarters, the overall trading volume of the Cryptocurrency market has shrunk to less than $2 million, of which XRP is the most representative and influential. At the end of 2017, XRP skyrocketed to nearly $40 per piece. At that time, the entire market experienced a sharp decline – BTC plummeted significantly from around $2000. Subsequently, with the rapid climb of Bitcoin and the continuous development of the DeFi token market, XRP’s performance can even be said to be inferior to ETH, and this indicator seems to have not attracted anyone’s attention until today, gradually disappearing

Then the question arises. Why has Cryptocurrency hardly stopped “rising together” in the past few years? The reasons are as follows: 1. Both Bitcoin and Ethereum are global venture capital funds, which usually price an asset in different periods, and generate large market fluctuations within a certain time range. 2. Although Bitcoin and Ethereum do have a high correlation in some cases (such as the ICO foam at the end of 2017). However, in the past few weeks, they have all increased, indicating that there may be an interaction or complementary relationship between them. For example, in early 2016, Bitcoin briefly rebounded due to regulatory restrictions imposed on the field. However, just a few days ago, Bitcoin returned to above $4000 Of course, if we consider whether Bitcoin can once again reach a historic high before achieving a breakthrough in 2021?

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/21905/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/05/2023 02:20
Next 08/05/2023 02:43

Recommended articles