Cryptocurrencies Surge As Bitcoin Price Bounces Back After A Devastating Slump
Earlier this month, experts have predicted that cryptocurrencies are going to experience more hell than heaven following the slumping trajectory of Bitcoin price.
Bloomberg reported the first week of June that GTI Vera Convergence-Divergence indicator provided hints suggesting further downswing of crypto prices with Bitcoin's price falling 12% to only $7,544.42 from the previous weeks.
Performance of cryptocurrencies has been volatile since the crypto bubble in 2017, although Bitcoin, in particular, experienced a high of 62% price increase since the bubble period.
But even then, the price movement of Bitcoin and other cryptocurrencies has been unpredictable, which is probably why large conglomerates, including Berkshire Hathaway of Warren Buffet, have been skeptical about investing in them.
However, this week major cryptos are on an upward swing with Bitcoin, Ether, and Ripple all experienced price increases, Coin Telegraph writes. In fact, contrary to the Bloomberg report, cryptocurrencies started to bounce back in terms of price in late May this year.
Bitcoin's price has increased by 3% late of May and was already trading at $8,573. Meanwhile, Ether is selling at nearly $230 this week while Ripple has been selling between $3-$4 press time.
The overall market capitalization of all digital currencies amounts to $272 billion as of the moment, but it is expected to rise amidst promising drift of cryptocurrencies in recent weeks. Furthermore, the fluctuation of crypto prices does not seem to be influenced by disturbances in the prices of oil in the world market.
As of late, Bitcoin is selling at $8,100 and experts forecast that while the price can behave erratically over the next months, its selling price may remain competitive for a long time. There is much feasibility in this prediction as Facebook plans to unveil its own digital currency, Libra, and is reportedly backed up by business giants. In an article by the Wall Street Journal,
Facebook has reportedly tapped on high-profile companies like Visa, Mastercard, and PayPal to support the new crypto. Moreover, Facebook has also received pledges from various financial firms, venture capitalists, and leading companies that they will invest at least $10 million each to set off Libra.
The introduction of new digital currencies and the upsurge of the prices of the old guards, particularly Bitcoin, Ether, and Ripple, means that the confidence towards digital currencies as a marketable holding may further help boost crypto prices despite skepticism that erupts among many conglomerates. But whether cryptocurrencies collapse or not, only time will tell.