Bitcoin (BTC) and other virtual currencies have now retraced after the large gains registered in recent days. It is worth mentioning that Ethereum (ETH) has registered new all-time highs after surpassing $2,500. Nevertheless, the second-largest virtual currency is now 7% down from this high registered a few hours ago.
Cryptocurrencies Make a Pause After Massive Growth
Bitcoin continues to be the leader in the market with a market valuation of over $1.1 trillion and a dominance of 52%. During a conversation with UseTheBitcoin, Nick Spanos, the co-founder of Zap.org, explained that the run in the price of Bitcoin is currently fueled by two core events.
The first one is related to the Coinbase listing. This is one of the largest cryptocurrency exchanges in the world. In recent years the company was able to attract millions of users from different countries offering them the possibility to trade digital assets.
The second thing that Spanos takes into consideration is an Exchange-Traded product (ETF). There are several companies involved in offering a Bitcoin ETF product. The U.S. Securities and Exchange Commission (SEC) should make a decision on whether to approve it or not.
On the matter, Spanos mentioned:
“The count of companies seeking an ETF is also on the rise as investors press on the SEC for its first approval. All these factors are poised to push Bitcoin to a new high of $70,000 by the end of April.”
We are getting closer to the end of the month and we could see Bitcoin moving higher even further. Nevertheless, the virtual currency has recently retraced from $64,800 to $61,300. Other digital assets have also experienced large growth rates in recent days and a retracement in the last hours.
Some of the coins that are now correcting include Binance Coin (BNB), Cardano (ADA), Polkadot (DOT), and Uniswap (UNI). The coins that are still operating positively include Litecoin (LTC) and Dogecoin (DOGE).
It is worth mentioning that Dogecoin and Litecoin tend to operate in similar ways considering they are both using Scrypt. This requires less power than traditional ASIC mining for Bitcoin (BTC) and makes it easier for Litecoin users to mine not only LTC but also DOGE at the same time.
The cryptocurrency market is accelerating and we could see prices that only the most bullish analysts could predict. Nevertheless, we should also be prepared to reach a top and start to reverse the gains.