Altcoins Relish In Market Recovery
This afternoon, the markets have made way to a gentle recovery after a week of devastating falls. Overall, the value of many major cryptocurrencies has sunk, bottoms have been found and the entire community has been left a little exhausted. The recovery through the afternoon hasnât brought with it anything significant in the top end of the markets, but, many altcoins have actually relished in some glory during this time.
Whilst Bitcoins recovery is barely noticeable, cryptos like VeChain, PundiX and Ontology have risen dramatically over the past 24 hours, in some cases marking up to 50% gains.
There is a reason for this and thereâs a reason that the likes of Bitcoin hasnât seen such optimism too. In falling markets, investors want to avoid volatile trades, therefore investing high sums in cryptocurrencies like Bitcoin means that the chance of a loss is high, its too risky. Focusing on smaller altcoins however that can offer bigger returns for less investment is far more sensible, yes, these coins are more volatile but volatility can work in the investors favour at the end of the day.
With money being pumped into the altcoins then, gains of 50% are actually quite normal to see during such bear markets. According to CCN:
âIn the past 24 hours, an increasing number of investors have started to reallocate their funds from major digital assets like Bitcoin and Ethereum to tokens such as Ontology, VeChain, ICON, Pundi X, Nano, and Waltonchain, pushing the valuation of the crypto market up.â
âFor months, investors have been reluctant towards investing in tokens and high-risk trades. It is positive that an increasing number of retail traders are committing to small market cap cryptocurrencies, pushing the volume of the crypto market upwards. The ideal scenario for the market in the next few days would be Bitcoin demonstrating stability in the mid-$6,000 region, establishing a foundation for a big rally in the short-term.â
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As this recovery creeps up with Bitcoin and allows the currency to find a balance, the markets will be set up for a short surge in the future. Letâs consider this, Bitcoin currently has a dominance within the markets at around 52%. As a result of this, a climb by Bitcoin will pull the rest of the markets up too, therefore balance now should set the markets up for âmore luckâ in the coming days. Itâs unlikely to last and the markets will recover from this surge, but at the very least, this could offer investors a good opportunity to move some assets around, into the altcoins that are likely to spike 50% again during the next market recovery, whenever that may be.