Get the latest news on what’s driving the cryptocurrency market.
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The Bitcoin Boom
It’s no secret that Bitcoin has been on a tear lately. The question is, why?
There are a few possible explanations. One is that the COVID-19 pandemic has made people more risk-averse, and they’re seeking out safe haven assets like Bitcoin. Another is that institutional investors are finally taking cryptocurrency seriously and investing in it. And the last possibility is that the halving, which cut the supply of new Bitcoins entering circulation, is driving up demand and price.
Whatever the reason, Bitcoin’s price has been on an impressive run lately, and it doesn’t look like it’s going to slow down anytime soon. So if you’re thinking about investing in cryptocurrency, now might be a good time to do it.
The Ethereum Effect
Cryptocurrencies are back in the news today as prices across the board are on the rise. One of the biggest drivers of this price increase appears to be Ethereum, which is up over 13% in the last 24 hours.
What’s driving Ethereum’s price increase? One theory is that it’s due to increasing interest from institutional investors. J.P. Morgan recently announced that it was launching its own cryptocurrency, called JPM Coin, and Goldman Sachs is reportedly considering a similar move. As big banks get involved with cryptocurrencies, it could make Ethereum and other digital currencies more attractive to investors.
Another possibility is that Ethereum’s price is being driven up by anticipation of its upcoming Constantinople hard fork. This upgrade is expected to improve Ethereum’s scalability and make it more attractive for use in real-world applications. Investors may be buying up Ethereum in anticipation of these improvements, driving up the price in the process.
Whatever the reason for Ethereum’s price increase, it’s good news for cryptocurrency investors. Prices had been struggling for months, so this uptick is a welcome development.
The Ripple Effect
When one cryptocurrency rises in value, it often has a ripple effect on other coins in the market. For example, if Bitcoin prices go up, altcoins like Ethereum, Litecoin, and Bitcoin Cash often see a price increase as well. This is because investors often view cryptocurrency as a whole market, rather than just individual coins. When one coin does well, it often has a domino effect on the rest of the market.
The Litecoin Surge
Cryptocurrency markets are seeing a strong surge today, with Litecoin (LTC) leading the pack with a 20 percent gain.
The Litecoin surge appears to be driven by three main factors:
First, Litecoin is benefiting from the general Corbynmess surrounding Bitcoin at the moment. While Bitcoin’s price has been volatile in recent weeks, Litecoin has remained relatively stable… until now. Investors may be flocking to Litecoin as a more stable alternative to Bitcoin.
Second, the proposed Bitcoin Cash hard fork is also driving up demand for Litecoin. As investors fret about what will happen to their Bitcoin holdings in the event of a hard fork, they are increasingly turning to altcoins like Litecoin as safe havens.
Finally, it’s worth noting that today’s surge comes on the heels of Litecoin’s recent adoption by major cryptocurrency exchange Coinbase. Coinbase added support for Litecoin last week, and this may be driving up demand for the altcoin.