Over the past month, many cryptocurrencies have risen significantly more than the very first Bitcoin. Some of them have already added several orders of magnitude to the price, ADA, MATIC and other large cap altcoins are making double-digit gains. One of the breakout stars of 2021 is Polygon (MATIC), the price of which has risen by 60% over the past 24 hours. Other notable achievements include an 80% increase in the price of Ergo (ERG) and a 48% increase in the price of Sora (XOR).
Bitcoin is still around the $ 50,000 level. Thus, altcoins performed better. Bitcoin’s recovery is slow. This is due to the fact that whales have become more active and began to transfer large amounts of Bitcoins to exchanges. Curiously, back in early May, analysts assured that Bitcoin is ready to conquer new peaks, which means that such predictions often have no basis other than the personal opinion of individual experts.
Today analysts assure that significant fluctuations await the market. It is possible that Bitcoin could both fall and rise in the medium term. This means that investors need to closely monitor the changing market sentiment. Especially when it comes to short-term deposits. At the same time, digital money is safe in the long term. Experts assure that despite the volatility, Bitcoin will return to its positions, and later it will begin to make a profit.
Altcoins investment has increased
Note that recently, investors are increasingly willing to invest in forks of Bitcoin, Ethereum or other well-known projects. Such cryptocurrencies allow you to double your capital in a few days, which seems incredible to many. But many people forget that the risk of losing everything is just as great as the chance to make money. A great example is the sharp drop in meme cryptocurrencies that happened just a few days ago.
Although in the last 24 hours, these coins have returned to the growth path. For example, Dogecoin is up 17%. This comes as Elon Musk recently revealed that he is working with the Doge developers to improve transaction efficiency.
Coinbase is also set to host Dogecoin in the next two months, so it is generally a good time to own the coin.
It has been a mixed week for the cryptocurrency industry. For some, like Ethereum, it has been the best week ever since it hit its all-time high this week. However, for others like Bitcoin, these have been weeks that fans will want to forget as one of his biggest backers turned against him. Collectively, the total market cap remained above $ 2.2 trillion, but mostly held by altcoins.
According to most analysts, Tesla’s decision to stop BTC payments continued to have a big impact on the market. And it was the main reason why BTC is still in a bearish trend.
Environmental issues are an incredibly sensitive topic right now, and Tesla’s move could serve as a wake-up call for companies and consumers using Bitcoin that have not yet considered its carbon footprint.