Bitcoin (BTC) (learn more here), which is the first decentralized cryptocurrency, is starting to recover after facing ups and downs last week. Its price is getting closer to $90,000 again, which hasn’t happened since last Wednesday. Other major cryptocurrencies, like Ethereum (ETH) (learn more here), have also improved. Ethereum has crossed the $3,000 mark, and Binance Coin(learn more here) is staying strong above $860.
Bitcoin Approaches $90K
Last week, there were big changes in Bitcoin’s value. On Monday, its price dropped significantly from $90,000 to below $85,500. Then, by Wednesday, it jumped back over $90,000. Sadly, it didn’t stay long at this level and fell again to under $85,500.
On Thursday, more price changes happened when the US CPI report (a measure of inflation) came out. The report had better news than people expected. This caused Bitcoin’s price to go up quickly, reaching $89,500, but it couldn’t go any higher and dropped again. On Friday, Bitcoin hit a low point of $84,500, which was its lowest price in weeks.
Bullish traders (people who believe prices will go up) stepped in over the weekend and pushed Bitcoin’s price back to $88,000. For most of the weekend, the price stayed stable. By Monday morning, Bitcoin started rising again, almost reaching $90,000. Right now, Bitcoin’s market value is almost $1.8 trillion, and it dominates 57.5% of the whole cryptocurrency market.
What is a market cap? A market capitalization (market cap) means the total value of a cryptocurrency like Bitcoin. It’s calculated by multiplying the price of one coin by the total number of coins available. Learn more about crypto market cap.
Ethereum Crosses $3K Again
Ethereum, another huge name in crypto, also saw its price drop last week. It went as low as $2,800 during the market correction (a temporary decrease in prices). However, it recovered pretty quickly, climbing back up to $2,900. After struggling to stay above $3,000 for a while, Ethereum managed to reach this level earlier today.
Binance Coin and Other Cryptos
Binance Coin (BNB), a utility token mainly used for trading and paying fees on Binance (a cryptocurrency exchange), stayed above $860 after gaining some value. Solana (SOL), TRX, Dogecoin (DOGE), and Chainlink (LINK) also went up slightly in value. Dogecoin, which is known for its Shiba Inu dog mascot, has always been a favorite in the crypto world and a fun introduction for new investors.
Meanwhile, some altcoins had bigger movements. For example, HYPE rose by 4%, and NIGHT increased by 13%, reaching $0.10. (HYPE and NIGHT are less-known, smaller cryptocurrencies compared to Bitcoin or Ethereum.)
Not all cryptocurrencies gained value, though. Some dropped sharply. AAVE decreased by 11%, and CC fell even more with a 21% loss.
Overall, the total value of all cryptocurrencies combined went up by $30 billion in a single day, bringing the crypto market’s value to $3.12 trillion.
What Does This Mean for Investors?
For people investing in Bitcoin, Ethereum, and other cryptocurrencies, this news is both positive and a bit uncertain. While prices are recovering for now, they have been quite unpredictable lately. This kind of rapid price movement is common in the crypto world. It’s why some investors love it, but it also makes crypto investing risky.
New and small investors should be cautious. Always learn as much as you can about coins, like Ethereum or Dogecoin, to understand their purpose and why people value them.