On April 16, the price of Bitcoin reached the $8,450 mark. The raise in price was caused by a rise in trading volumes on a number of major cryptocurrency exchanges. Cardano (ADA), in a similar fashion also rose 11% to become the day’s second best performer.
In 2018, many digital currencies have been following the price trend established by bitcoin. The cryptocurrency industry has been going through period of extreme volatility. Several small cryptocurrecies that have small market caps compared to bitcoin performed badly when compared to bitcoin. Bitcoin ended the day with the best performance year-to-date.
According to analyst, the poor performance by altcoins like Cardano has been caused by the rise in demand of bitcoin, which many investors consider a safe avenue to put their money. This argument is justified given the fact that bitcoin has the highest number of user, has a very deep market and has maintained a high level of liquidity despite the fact that it is very volatile.
When investos are not so certain about future occurrences, and are worried about the short-term trend of the market, they tend to shy away from putting their money in assets which are very risky and volatile. Because of this, the start of this year has seen major digital currencies like Ethereum and bitcoin perform better than small cryptocurrencies.
In the recent days, many investors and traders have become more confident in making investment decisions have are now putting their money in cryptocurrencies with small market caps as well as other major coins apart from Ethereum and bitcoin. The unwillingness by traders to invest according to the price trend of bicoin as well as the independent movement of cryptocurrencies is an indication that the market is growing and becoming more stable. It also shows that the market has started to recover following several months of falling.
Many investors are not certain about the future and are also concerned about the short-term movements in the market will affect the entire market.
In the past 24 hours, the price of Cardano (ADA) went up by over 13% against bitcoin and 12% against the US dollar. Cardano (ADA) is a proof-of-stake blockchain protocol which is designed to service several decentralized applications with efficiency and flexibility.
The price of ICON (ICX), which is commonly referred to as South Korea’s Ethereum also recorded a significant rise against bitcoin and the US dollar.