Cryptocurrency Market Update Amid Market Volatility
The VIX is currently above 65, a level that has only been seen twice, once during the 2020 pandemic and once during the 2008 financial crisis. This caused the market to go crazy yesterday. However, as of today, the market has managed to recover. Following yesterday’s plunge in the stock market, total trading volume in the cryptocurrency market today grew by 282% in 24 hours. Bitcoin still dominates with a market share of 55%; however, the Bitcoin ETF had daily outflows of US$196.1 million and inflows of US$5.9 million on August 5.
The Resilience of Bitcoin
As of August 6, Bitcoin was trading at $55,477, up 2.73% in 24 hours. Bitcoin has 70.94% long-term holders and 1.26% whale holders, and has loyal support from giants such as JPMorgan Chase and MicroStrategy’s Michael Saylor. Top dogs have bought the dip and helped the cryptocurrency gain traction again.
Rising Ethereum and Solana Prices
Currently, the second-largest cryptocurrency, Ethereum, is trading at $2,503, up 6.83%, gradually rising after yesterday’s storm. Ethereum is targeting a 24-hour all-time high near $2,547.97. Solana has broken through a 24-hour all-time high of $141.06 and is currently trading at $141.16, up from yesterday’s drop to $110.60. The trading volume of SOL token increased by 70.35% in just one day as the price increased by 14.67%.
Altcoins Respond to Bitcoin’s Momentum
Despite the complete chaos in the market, meme coins like Shiba Inu and PEPE have seen positive growth. Dogecoin also increased by 10.12% in the past 24 hours, marking its first positive growth after a recent decline. The bullish effects of Bitcoin have transferred to altcoins such as XRP, ADA, and AVAX, which have all increased their prices by 10%. Expect some volatility today as the cryptocurrency market repositions itself, but by the end of the day, the industry will further stabilize.
