Digital currencies on the upswing

Published on: 08-Apr-2019
Category: Trading
Last updated: 08-Apr-2019

Digital currencies on the upswing

The bitcoin price rises after a long time and other crypto currencies made profits.
The Bitcoin rose 20 percent last week and worth more than $ 5,000. This value has not been reached for 5 months. This week the price is already over $ 5200 and thus two percent plus. Other digital currencies are also recording gains, including Ethereum, Ripple and Bitcoin Cash. Total cryptocurrencies had a market capitalization of $ 181 billion.

The high price increase has now ended the weak phase of the Bitcoin price and has motivated investors to reinvest. Experts believe that a price of up to $ 6,000 is possible and thus expect risky action. Anyone who invests in bitcoins or other digital currencies in the past just has to be patient, as US financial regulators have been deferring again and again. Bitcoin index fund. Bitcoin stagnated at $ 3,300 to $ 4,000.

There are several reasons for the sudden upsurge in Bitcoin prices, which are currently invigorating the market but can also cause concern.

Since the market for cryptocurrencies is comparatively small, orders are enough to influence the price. Last week, there was a single $ 100 million contract worth over 20000 bitcoins. As a result, the value of a bitcoin rose to more than $ 4,200 and attracted more investors. In the long run, however, it is not the big investors that decide, but small investors. Since mid-March, 30-40 percent of wallets (crypto purses) that have been inactive for several months have been reactivated. The upswing is also supported and promoted by smaller investors.

There are also algorithmic funds in the crypto market that are directed at institutional investors. The algorithm decides its order according to course thresholds, which are programmed in advance and with which the computer acts fully automatically.

The crypto market will be removed from this highlight of the fall of 2017. At that time, the Bitcoin had a price of $ 20,000. Above all, people living in high-inflation countries are investing in digital currencies to protect their money.

Bitcoins are allocated by solving arithmetic tasks and are limited to a quantity of 21 million pieces. The more tasks computers solve, the more Bitcoins are spared. There are currently 17.6 million bitcoins, 1.5 million more than two years ago. This is also an end in sight and thus also rising prices. But even the high prices do not help the crypto currencies, if they are not used in reality.


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