Recently, Bitcoin dropped below $4,000 on January 3, losing approximately three percent of its value, but still managed to avoid further loses and closed the workweek at $3,956 on January 4. Trading volumes for the BTC-USD pair were stable above $3 billion.
The biggest cryptocurrency could not find its direction during the trading day on January 5 and continued hovering in the $3,900 to $3,954 area, but successfully broke the $4,000 line on January 6. The sudden spike resulted in a 6.8 percent price increase as BTC closed the session at $4,168 – above $4k for the first time since December 25.
Ethereum continued to be one of the best-performing currencies in the Top 100. The ETH-USD pair successfully defended the $150 level despite dropping 4.4 percent on January 3. It erased losses on the next day, January 4 and closed the day at $158.
The second biggest cryptocurrency in terms on market cap, could not break above $160 and made no significant price movements on January 5. On January 6, however, it finally managed to cross the $160 mark and close at this price, previously touching $165 during intraday.
Within seven days, the Ethereum price has increased from $117 to $159, by over 35 percent against the U.S. dollar, making it one of the best performing crypto assets throughout the past two months.
Ethereum’s price has climbed significantly over the past month on investor’s expectations for its upcoming Constantinople fork event which is scheduled to occur around January 16th. Several weeks ago, in mid-December, Ethereum was trading at $83, from which it is currently trading up over 90%.
Ripple, XRP is currently trading up 3.2% at $0.369 and is still trading below its one-week highs of $0.38. Litecoin is one of today’s best performing altcoins and is trading up nearly 12% at its current price of $39.3. Litecoin is up from weekly lows of $30.
For three months the market has hovered between $100 and $140 billion. As seen in the yearly chart below, short-term volatility in a low price range doesn’t present a proper accumulation period.
Many traders anticipate an increase in market capitalization to $180 billion as a potential catalyst for a mid-term rally. Even a recovery to $200-$250 billion range could still leave the market vulnerable to a future additional drop in value.