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The current performance of the cryptocurrency market amid economic instability is far from perfect. The only positive factor was the news that Tesla Motors allowed its customers to buy electric cars with bitcoin. However, the market did not support this surge. As a result, the main cryptocurrencies continue to slowly pull back to their local lows.
The BTC/USD pair rallied considerably on March 24 and even tried to continue its upward movement the next day, but the support of retail traders was not enough. Thus, the quotes have dropped to $53,000 over the past two days. Moreover, there is every reason to believe that the asset may even collapse to the level of $50,000. Despite this, bitcoin has every chance to resume its rally. For example, Fidelity applied to launch an exchange traded fund to track the performance of bitcoin. Investment bank Goldman Sachs did the same a few days earlier. Despite good prospects for an impressive increase, the market did not respond to the news properly.
In addition, MicroStrategy CEO Michael Saylor noted that the first cryptocurrency's market value could reach $100 trillion. At the same time, many public figures, including the head of Ark Invest and Tesla Chief Executive Elon Musk, warn of high bitcoin transaction fees on the network, which is not a positive message as well.
However, this could become a driver for an increase in the main altcoin - ether which also suffered huge losses. The ETH/USD pair is currently trading at $1,610. Despite its serious decline, the cryptocurrency has every chance to gain ground under favorable market conditions. The reason for further growth in ether could be blockchain startup Stacked that created a trust investment fund. The product will allow accredited investors to stake ETH on the next generation of Ethereum. This will enable the cryptocurrency to attract an institutional investor and then take away part of bitcoin traders due to faster transactions and low fees.
Ripple's coin also has great prospects for growth. The cryptocurrency is actively rising in price and has already reached $0.560. According to the chart, the XRP/USD pair surged after positive news about the SEC's case against Ripple. The judge said that the XRP token had a currency value as well as a utility. This had a positive effect on the cryptocurrency, which soared by 12%.
As for Litecoin, the token has lost 0.8% over the past day. The quotes are currently trading at $170. However, slight fluctuations in the price of this cryptocurrency under the current market conditions are the norm.
Despite rather upbeat news, the cryptocurrency market cannot resume its stable upward movement. This can be attributed by the lack of strong momentum that could provide large investors with confidence. The lack of interest and injections from major companies prevents the market from gaining ground. The keen interest of retail traders at the current stage is unable to drive the crypto market up. This is due to the economic indicators of the stock markets, which do not allow digital assets to grow in value on the back of the coronavirus pandemic. Thus, without large investors, the main cryptocurrencies will most likely continue to fluctuate, slowly sinking to their local lows.
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