The cryptocurrency market has been recovering recently after the bitcoin crash that occurred at the end of last week. The total market capitalization of the coins reached $1.7 trillion thanks to the excellent growth rates of the price of ETH, LTC, XRP, and a number of other altcoins. However, the next drop in bitcoin showed how great the dependence of even large cryptocurrencies on the state of the first crypto asset is. At the same time, the market decline was not so large-scale, but the market lost 8.5% of the total capitalization.
It is worth noting that ethereum resisted the market and made several attempts to buy back the fall. This can be clearly seen on the horizontal charts, which indicate an abrupt drop in ETH quotes. Despite the stability and good growth of indicators, ethereum also dipped to $2,400. However, the narrower dynamics of changes in quotes show significant growth (+4.5%), which indicates an immediate buyout of the recent fall. At the same time, daily trading volumes remain at average levels in the region of $42 billion, which indicates some investor concerns even regarding the most stable altcoin of recent months. In the near future, the cryptocurrency will continue to grow, however, the asset may experience serious problems at the level of $3,000 due to recent statements that have spoiled the news background of the crypto asset market. At the same time, ethereum continues to attract the attention of large companies, as evidenced by WisdomTree's application to the SEC to launch an ETF on ether, which may have a positive impact on the quotes and the future of the altcoin in the future.
The Ripple token has been walking on thin ice for the past two days, and the collapse of bitcoin determined the decline in the coin's quotes to $0.850. As of 13:00 UTC, the cryptocurrency also began to actively recover its positions, buying back the fall at the liquid level, as evidenced by the local dynamics of price changes (+3.5%). At the same time, the daily trading volumes of the asset remain at the usual low level of around $6 billion. In the near future, the token will again overcome the $1 mark, where a lot of buyer support is concentrated and will continue to move up to the difficult milestone of $1.4-$1.5.
Litecoin indicators also reacted painfully to the collapse of bitcoin, and during the day, the asset fell by 13%, again dropping to $170. For the cryptocurrency, this threshold is not a corridor for an upward movement, and therefore LTC may experience problems when overcoming this range. Despite the positive dynamics of price changes over the past hours (+ 5%) and good daily trading indicators of $6 billion, the cryptocurrency is starting to fluctuate, as can be seen on the horizontal charts. Unlike its more powerful counterparts, Litecoin needs a strong market momentum to overcome a difficult milestone.
Even though cryptocurrencies are recovering their positions, the news background can significantly complicate this process. Today, May 28, it became known that the CEO of Metalla Royalty, Brett Heath, believes that the demand for cryptocurrencies will lead to a global crisis like 2008. In addition, the Central Bank of South Korea said that transactions with crypto assets threaten the security of the country's financial system due to excessive volatility. However, representatives of the crypto industry stood up for the market, and the founder of the crypto exchange Binance said that no regulators would be able to destroy bitcoin and the blockchain. Therefore, the entrepreneur urged countries to develop an effective mechanism for regulating cryptocurrencies. Considering all of the above, as well as the market's excessive dependence on BTC, there is no need to expect an increase in quotes after the restoration of the usual indicators of assets. This is due to the excessive volatility of bitcoin, which is accompanied by fluctuations in the entire market and significantly deters investors from entering the market.
