Bitcoin (BTC) is now being traded once again above $38,000 after a few days below this level. The largest cryptocurrency is now following traditional financial markets, which experienced large volatility in recent days. At the same time, Ethereum has also moved above $2,800. The second-largest cryptocurrency has surged by 16% in the last 7 days.
Bitcoin Recovers After Volatility in Traditional Markets
Volatility in traditional markets has spiked in recent days as companies present their earnings. Some companies were well below the expectations while others beat forecasts. This has definitely affected Bitcoin and the cryptocurrency market. We have seen the largest cryptocurrency moving between $39,000 and $36,000 in recent days.
Now, Bitcoin seems to have stabilized close to $38,000 and Ethereum near $2,800. We might experience lower volatility during the weekend if Friday turns out to be a calm day for traditional markets. An interesting thing about Bitcoin is the fact that it is now being traded 2% above its price 7 days ago.
Meanwhile, Ethereum has gained over 16% in just seven days. This shows how some virtual currencies are showing their strength while others continue to fall. For example, Binance Coin (BNB) has lost 3.4% of its price over the last few days. This displays a different situation for digital currencies.
Among the top 20, we have cryptocurrencies such as Solana (SOL) that have gained over 18.6% in seven days and Avalanche (AVAX) which registered gains of 8.2%. Nonetheless, there are other coins such as Luna (TERRA) or Cosmos (ATOM), that registered losses of over 2% in just a week.
We have seen the expansion of cryptocurrencies throughout 2021. Several projects reached the top 10 while others left it. There are constant innovations being considered in the cryptocurrency market, which helps it to expand and move forward. In some cases, these innovations and projects do not have a short-term impact on price, however, they could have a clear impact in the future.
When it comes to recent volatility, we could see Bitcoin coming back to $37,000 and even $36,000 if traditional markets do not offer good results on Friday. This would, of course, have also a negative impact on other digital assets as well. Usually, when Bitcoin moves lower, other digital assets follow the trend. Hence, crypto investors should closely follow what happens in financial markets to understand why digital assets move.