In just 24 hours after it recorded massive earnings and reached a maximum of 450 billion dollars, the cryptocurrency market declined, marking a minor correction. Significant cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash and Ripple, all fell by over 10%.
In a period of extreme volatility, the vast preponderance of market cryptocurrencies tends to follow the trend of two large cryptocurrencies: Bitcoin and Ethereum. This morning, the value of both Bitcoin and Ethereum, the local cryptocurrency of the Ethereum network, fell 10%, eliminating earnings on February 10th.
Ethereum reached a maximum of 909 USD shorter than 24 hours ago, but during the rally, the daily trading volume of the Ethereum in all significant exchanges remained comparative low.
Accordingly, in the last 12 hours, the price of the Ethereum has dropped from 909 USD to 792 USD, maintaining at 810 USD. Given that Ethereum has encountered a precipitous decline over the past 24 hours, it is unlikely that the value of Ethereum will continue to drop unless it drops below 800 USD.
The regular trading volume of the Ethereum is still low on significant exchanges and is fighting to recover momentum.
Bitcoin showed a related trend to the Ethereum, sinking below 8,000 USD to 7,950 USD. Although he again won some of his losses, such as Ethereum, he tested the 8,000 USD zone. Bitcoin too has a low daily trading volume in meaningful exchanges, and therefore, unless a short-term recovery is performed, it is possible that the value of Bitcoin goods will remain in the area of 8,100 USD in the next 24 hours.
But, if Bitcoin and Ethereum can increase rapidly in the short run, as the rate of Ethereum has grown from 780 USD to 900 USD on Feb. 10, both cryptocurrencies have the potential to return to yesterday’s levels, mainly if volumes can sustain short-term momentum.
Roc Nation, the company, founded by Jay Z, a rapper, maker, and media mogul, has invested in Robinhood, the US financial services firm that begins the cryptocurrency trading platform called Robinhood Crypto later this year.
Neil Sirni, president of Arrive, a subsidiary of Roc Nation, said:
We think in Baiju and Vlad’s mission to make financial markets more affordable and cost-effective for customers of all dimensions. Robinhood will have our help while executing the long-term image of their company.
The valid announcement of Roc Nation highlighted Robinhood’s medium-term plan to operate a cryptocurrency trading platform and its idea to improve the accessibility of the financial market.
If the world stock market continues to remain volatile and the demand for cryptocurrency retrieves in the short term, as it has done this week, it is possible for traditional market fund investors to investigate cryptocurrencies as the medium-term investment to span against the global funds market.
The market shows some signs of medium-term redeeming, but the requirement for cryptocurrencies and daily trading volume do not support the move. For a whole impetus to build, the daily trading volumes of significant cryptocurrencies in large-scale cryptocurrency exchanges must remain relatively high.