The total cryptocurrency market is going through a recession. The leading currency, bitcoin , is pegged at $30,000.
Days have passed after the sharp drop in the cryptocurrency market and the trend seems to be stabilizing around bitcoin , the leader of the pack.
After the decline of different currencies due to the global political and economic context, in addition to the Luna case that scared investors , the market seems to be regularizing itself, with average figures that have been preserved during the last hours.
According to information published by CoinMarketCap, “between Monday May 23 and Sunday May 29, the fluctuations in the price of bitcoin remained below US$30,000 per unit for most of the week,” he tells us. Carlos Bernos, Country Manager of Buda.com .
“The largest drops in the market value of bitcoin occurred on Monday, May 23 and Thursday, May 26; falling to a weekly low of US$28,303.61 a unit on Thursday. It is only during the night of Sunday the 29th that the market value of bitcoin climbs back above US$30,000 per unit”, he refers.
This trend, of course, are averages despite the daily fluctuations that the currency may suffer.
For example, bitcoin has recovered up to 8% from the previous week, a behavior that is causing the rest of the market to recover as well.
BNB, Cardano, XRP, Polkadot are starting to keep their values in the green in both daily and weekly percentages.
However, there are some cryptocurrencies that are still under attack, such as Ethereum, which remains below 2 thousand dollars, with a slight drop, compared to the last seven days.
Will cryptocurrencies continue to fall?
This case of stabilization will continue until some positive (or negative) news hits the market. Given this, government policies are vital to demarcate the short-term path in values.
“The US bank, JP Morgan, ruled on bitcoin, indicating that the cryptocurrency is among its preferred alternative financial assets for investment, placing its “fair price” at US$38,000 per unit,” says Bernos. “The Paraguayan Chamber of Deputies approved last Wednesday, with modifications, a bill that regulates the industry and commercialization of Virtual Assets – Cryptoactives, which includes a limitation on the energy expenditure of bitcoin mining in the country.”
It is important to remember two keys in the cryptocurrency investment process: read everything about the projects behind the coins we buy and never risk money that we are not willing to lose.