Friday, April 12, 2024
HomeBusinessAre Cryptocurrencies on the Road to Recovery?

Are Cryptocurrencies on the Road to Recovery?

The month of March has been a wild race for cryptocurrencies on the market. Popular cryptos like Bitcoin have been going up and down faster than you see betting sites change their NASCAR odds. While the action of cryptos has been fast-paced, it looks like the springtime is bringing good news for crypto holders that roughed a dark winter of crypto losses.

Bitcoin is Up, Over $42,000 Yet Again

Bitcoin is starting its road to recovery as it’s been up over 10% in the past month, while it also briefly went past $43,000 on Tuesday. The sharpest peak was seen on Monday night when Bitcoin went up by nearly $3,000. The crypto has been on a rollercoaster ride since the Russian invasion of Ukraine and the United States President Joe Biden issuing an executive order on cryptocurrencies.

One of the biggest boons for Bitcoin going into this week was Goldman Sachs making an over-the-counter (OTC) purchase of Bitcoin from Galaxy Digital. That purchase would mark the first time a major United States bank would buy an OTC Bitcoin non-deliverable option (NDO). Goldman Sachs getting into the Bitcoin game could signal that crypto is becoming more mainstream.

Dogecoin Has a Bone Tossed to Them as Well

The popular meme crypto Dogecoin has seen some recovery this past week. While the crypto is still down overall from last month, they had a week of recovery, gaining around 7%. One of the most significant moves with Dogecoin came from a single transaction on Monday that would amount to 261 million of Dogecoin.

Whale purchases are not uncommon, especially with lower-valued cryptos, but they can be a double-edged sword for people that are investors of crypto. While this whale has helped push the value of Dogecoin up, there is always the chance the same person can bring it down if or when they decide to sell all of their holdings of Dogecoin. People looking to invest in Dogecoin should keep a careful eye on large transactions like the one from Monday.

Litecoin is in the Group With Bitcoin and Dogecoin

Litecoin also has seen a rebound over the past week as it is up near 15%. The boost from the past week has also put the crypto up around the same percentage as last month. The most significant fact in the upward trend for Litecoin is the trading volume of the crypto. Litecoin has seen an increase in trading volume of around 28% in one week.

Ripple Has Good Week, But is Marred By a Bad Day

Ripple is up around 9% from its position last week and is up over 15% from last month’s numbers. However, the crypto did see a downward trend on Tuesday after having an earlier strong showing at the start of the day. While it might be down, it has a good chance of recovering with some of the news on Monday about banks from the international banking alliance making an agreement.

Canadian and Israeli banks have signed an agreement with National Australia Bank (NAB) in an effort to improve security and efficiency with their payment systems. It matters because these banks use the Ripple blockchain network for cross-border payments efficiency. With more banks using the blockchain tech of Ripple, that means there is an increased demand for Ripple, something that can potentially help the value of Ripple in the future.

Could the Dark Winter for Crypto Be Over?

The 2022 winter has been one of the worst for investors of crypto. Between the Russian invasion of Ukraine to Biden’s executive order, there has been much uncertainty in the crypto markets. While it might seem like the worst is over with a spring cleaning of the markets, we won’t know until later in the year if the storm for crypto is truly over or not. The Federal Reserve of the United States is still set to announce its stance on a U.S. Central Bank Digital Currency (CBDC), which will happen in May of this year.

A digital dollar could affect cryptocurrencies, which are valued by the U.S. dollar. So until the Federal Reserve’s announcement is made on a CBDC, cryptos might still have rough weather ahead of them.


Most Popular

Recent Comments