Cryptocurrency markets struggle to get a rise
Prices continue to do laps on the cryptocurrency circuit, taking two steps forward and one step back.
Bullish sentiment might be the mood of the day in cryptocurrency, with bitcoin showing signs of price growth and traders maintaining a rosy outlook for cryptos.
But despite recent rises, a cautious market seems to be gearing towards profit-taking rather than buying. At the time of writing, prices for most of the top 20 coins by market cap are averaging drops of around 5-10% in the last 24 hours.
On the whole, these kinds of moves might be nothing special.
But the recent bloodbath still seems to be fresh in people's minds, and traders might be loathed to watch their recent earnings disappear. As is common for these sharp drops, stablecoins are seeing some corresponding growth.
DigixDAO (gold backed paired stablecoin) prices are up about 35% over the last 24 hours, while MakerDAO (Ether backed paired stable coin) prices have remained relatively steady against the backdrop of a red market.
While there might be indications of growth in the near future, the usual two steps forward and one step back routine is still in play.
This might come as no surprise. Cryptocurrency's volatility may have become a self-fulfilling prophecy, and taking profits rather than eating the drops might be the smarter option for those who can pull it off.
Meanwhile, cryptocurrency contracts for difference (CFDs) are probably becoming more popular over time, and might be moving more money into the day trading space, causing more erratic daily and hourly shifts.
By the time you read this it's possible that the drops have started reversing as people start deciding to buy low.
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Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, NANO, SALT, BTC