In the latest development, the price of Bitcoin had crossed $4000. Major altcoins including Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH) also jumped.
Bitcoin price tumbled on Monday and Tuesday, falling below the psychologically crucial $4000 level. Yesterday, the top-ranking digital coin was trading down 1.5% at a price of around $3,950. However, today, it has broken the $4000 price barrier again after yesterday’s slump. At the time of writing, BTC is trading across exchanges at $4068, according to CoinMarketCap. The trading volume over a 24-hour period is $11.43 billion, and the market capitalization is $71.7 billion.
Wider crypto market sees mild gains
The trend is affecting every altcoin too. Ethereum (ETH), the 2nd largest cryptocurrency by market capitalization, is up almost 3.5% over the day, according to data from CoinMarketCap.
Ripple (XRP), the native currency of the Ripple Ledger, is up around 2.5%. It is now exchanging hands at a price of about $31 at the time of writing. XRP is ranked in 3rd position in terms of the market capitalization rankings and holds a total market cap value of $12.9 billion.
Ripple (XRP) CEO Brad Garlinghouse said it lacks interoperability and hence, it cannot compete with XRP.
Bitcoin’s low volatility sparks debate
Bitcoin’s price volatility has been very low lately. Volatility has returned to levels observed when bitcoin’s price was roughly $1,000. Bitcoin has only had one day with a more than 5 percent price swing in the past one month.
Even though the low volatility is leading many traders and investors to believe that Bitcoin is warming up for a big price swing, some analysts believe the lack of volatility could signal a maturing market.
Also, if manipulation has been happening in the crypto markets, this could signal it’s becoming harder for whales to manipulate the price of Bitcoin and other coins.
The future price movement will ultimately decide whether these observations are true.