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After a considerable period of record highs and remarkable gains, cryptocurrencies are experiencing an unstable time with uncertain changes in prices. Bitcoin and other leading cryptocurrencies have experienced a drop in share prices. Most recently was the crash brought by Elon Musk’s statement that Tesla had reversed its decision to accept Bitcoin as a payment method for their products.
Some countries like China have blocked the crypto exchanges and issued warnings against uncertain trading. Furthermore, the banks banned all digital coins when crypto transactions were declared illegal. This decision had a significant impact on the global crypto market.
Here are Some of the Reasons for the Crypto Market’s Extended Dip
According to Collin Plume, CEO of My Digital Money, certain players like hedge funds and endowments are looking for different types of investments in order to maximize profits. So, there is a lot of movement of money in different mediums. He also stated that once the United States approves ETFs, the major cryptos will experience a significant increase in the price.
Various factors are creating the current market scenario.
- Panic selling to reduce tax liability.
- Concerns about legislation and regulations.
- The influence of social media over investors outweighs actual project analysis.
Despite the dip in the value of cryptocurrency, the topmost bitcoins have maintained significant trading volume. The interest in trading crypto remains constant even as the prices decrease.
When Will it Recover?
It is difficult to predict the future of any market, but it would be fair to say that many believe in cryptocurrency’s future. Cryptocurrency has faced decreasing prices for various reasons; the most significant is the instability of China’s financial market. In June 2021, China stopped trading on cryptocurrencies to launch a state-backed digital currency.
Crypto has become a prominent part of the world economy, and like the stock market, it will recover. Bitcoin’s price dipped in April 2021 and later spiked to $60,000. Bitcoin recovered from the slump, and Ether picked up enough to set the market tracker to green. Bitcoin has gained around 255.65% over the last year, even after the crypto crashes on May 19 and June 8, 2021. Ether, the second most famous cryptocurrency, is also showing significant improvement. The same thing goes for Polygon, Ripple, Cardano, Polkadot are also gaining their value. The market tracker shows a rise in the value of most major crypto coins.
What is the Next Crypto Surge?
You want a significant return on your money no matter where you invest. So the question is, what is the next cryptocurrency surge? For some, bitcoin could be the obvious answer. However, it might not necessarily be the best one for the future. You increase your chances of generating a considerable gain by investing in smaller coins.
The following coins may be the next surge in crypto.
1. ETH
Ether is the second-largest cryptocurrency after Bitcoin. Over the summer, it went through an extensive upgrade, including reducing the supply. The upgrade also allowed the Ethereum network to manage more transactions per second, which improves the platform’s scalability and reduces transaction fees. The future of Ether looks promising.
2. BNB
BNB, Binance coin, is one of the most successful cryptocurrencies in trading volume. Like Bitcoin, BNB also puts a hard limit on the token numbers, which helped increase the token price exponentially. Furthermore, BNB spends around one-fifth of the profits to destroy or burn BNB tokens, which enhances the value of the remaining tokens.
3. Tether
Tether is a kind of stablecoin. It is connected to another asset and is tailored to offer a less volatile substitute for Bitcoin. Tether is tied to the US dollar, and in terms of value, it has a 1 to 1 ratio with the US dollar. It means that Tether is less risky than cryptos like Ethereum and Bitcoin. The primary benefit of this cryptocurrency is that it allows you to make transactions in traditional currencies instead of diving into complex digital currencies.
4. Algorand
Algorand (ALGO) was founded by the scientist Silvio Micali. The digital protocol offers its own blockchain infrastructure that is scalable and fully decentralized. After legalizing Bitcoins for legal tender, the Republic of El Salvador plans to use Algorand for constructing a state-supported crypto wallet. This wallet will allow both individuals and business owners to send and receive funds in the form of cryptocurrency from any part of the world. This action by El Salvador has provided a considerable boost to the cryptocurrency market. It will enable the users in the country to freely create crypto-fuelled applications and increase crypto-based transactions around the globe.
Cryptocurrencies will undoubtedly go through highs and lows like any other currency or investment. Despite that, it shows great promise for profits in the future. Bitcoin has been the primary driver in the crypto market to date. However, other cryptocurrencies may drive the next big surge. Consider investing in one of these lesser-known coins to increase your potential for financial gain.
If you want to learn more about cryptocurrencies, download the 2021 Cryptocurrency Investment For Free: https://bit.ly/3yzMetg
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