The cryptocurrency market is seeing a significant recovery following a dismal performance yesterday.
How Are The Altcoins Performing?
The cryptocurrency prices were fluctuating to a great extent.
- In comparison to Bitcoin, altcoins are performing better. Yesterday saw an 8% decrease in the price of Ethereum. It is presently trading at $1,635, up 8% over the past 24 hours. Prices for BNB, XRP, and Solana are all rising by 5% to 6%.
- However, Ethereum Classic is still fluctuating erratically. It decreased by 9% yesterday after rising by more than 25% over the last few days. On the bright side, it has risen again by 10%, marking the start of what could be a fabulous run ahead.
What Is Driving The Crypto Rebound?
The hawkish Fed was priced in by investors, which caused a decline in asset prices. Nevertheless, it seems that investors along with the general markets have stabilized at the moment. S&P 500 rose by 1.8% while NASDAQ 100 rose by 2.1%.
The value of the crypto market soared throughout the epidemic, making it more closely correlated with traditional markets than ever. An asset’s correlation to the overall market is gauged by its beta value. The beta of cryptocurrencies is 2. In other words, crypto assets move twice as much if the overall market grows or declines by 1%.
How long will the bulls reign?
Numerous factors will determine how long this cryptocurrency boom lasts.
- The Merging Effect: Anytime in the upcoming week, the Ethereum merge is anticipated to go live. According to experts, it will be a very promising move for altcoins.
- CPI Data: On September 13th, the Consumer Price Index data will be made public. Investors will also be examining this data.
- Fed’s Stance: The Federal Reserve’s approach to combating inflation will be determined by the CPI figures, and this will have a significant impact on the price of cryptocurrencies.