Hopes for steady Bitcoin growth towards $6000 were replaced by disappointment after market participants faced with the return of speculative pressure. On Thursday night, the BTC sharply declined by more than 8% to $4950 in just a few hours. The likelihood of this dynamic was clearly indicated by the RSI bearish divergence.
At some point last night, the BTC fell below the MA (200). Nevertheless, on Friday morning, Bitcoin returned to $5300 with a total capitalization of $93 billion. All of this indicates strong support on the way down to $5,000. As always, altcoins follow bitcoin, dropping from 1% (Litecoin) to 5% (Ethereum).
On top of this, there are doubts regarding “Ether”, which long holds the second place in terms of capitalization, now stands at $16.4 billion. The development team is very slow in moving towards PoS, and the head of the company, Vilatiy Buterin, is rather poorly promoting the project, which is now frankly behind of EOS and TRON. At the moment, there is an obvious trend to create own blockchains, in which Binance has been very successful. By the time of the switch to a new stage, it may happen that the Ethereum project will no longer be relevant.
Ripple reported a 31% sales increase of XRP (3d by market cap with 12.3 billion). However, in the crypto community, attitudes toward XRP are not so rosy. Against the background of the cryptocurrency triumphant return to growth since the beginning of 2019 (BTC + 40%, BNB + 283%), the XRP token has lost more than 16%. This is due to the company’s minor progress in promoting xRapid in the banking sector. The product was tested by many banks, but it never came to real use. At the end of 2017, XRP had few competitors, but by the end of the current year, there could be too many of them that could throw off this token from an honourable third place.
In the next few years and, perhaps, by the end of the current year, the list of top cryptocurrencies may have serious changes.
The first does not mean the best, and the practice can prove it once again. In the meantime, there is news almost every day that the large companies are developing their own blockchains/tokens, or they are entering into partnerships with projects in the crypto sphere.
The end of the “first browser war,” put new leaders on the market. At the moment the “first blockchain war” may already begin, and the number of its participants is already impressive.
The FxPro Analyst Team