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Litecoin [LTC] and Cardano [ADA] rise by 6% in one-hour; altcoins buoyed by BTC ascendance

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Litecoin [LTC] and Cardano [ADA] rise by 6% in one-hour; altcoins buoyed by BTC ascendance
Source: Pixabay

The Bitcoin price pump has resulted in an altcoin explosion. The imminent $7,000 ascendance of the top cryptocurrency has buoyed the likes of its silver counterpart, Litecoin [LTC] and Cardano [ADA], with the respective coins exhibiting massive 6 percent price increases within the hour.

On the back of Bitcoin breaking multiple price levels, several notable milestones have been achieved over the past 48-hours. The collective market has rallied over the $200 billion market cap level with the dominance of the top cryptocurrency reaching 59.2 percent, a level not seen since the December 2017 price pump.

Altcoins are also seeing a massive pump with Litecoin, the fifth largest and Cardano, the tenth largest cryptocurrency being the spearheads of the altcoin-bull-run. Digital Silver has amassed a whopping 11.15 percent incline against the US-dollar in the past 24-hours, while the hourly increase is at 6.03 percent.

Source: Trading View

Litecoin’s recent pump began early on 11 May, with the coin surging from $73.61 to $84.86 at press time, and continues to head upwards, with no imminent signs of correction. The market cap of the coin is currently $5.21 billion, adding over $700 million in the past 6 hours.

Coineal takes the top spot for LTC trade volume, in the trading pair LTC/BTC, accounting for 12.8 percent of global trade. Other notable exchanges on the list are Coinall, DOBI Exchange, ZBG and OKEx.



Source: Trading View

Cardano, another notable gainer in the market has seen a massive 9.7 percent spike against the dollar in the past 24-hours. The cryptocurrency began to pump at 0300 UTC on May 11, and saw its price increase from $0.591 to $0.695 at press time. The coin’s market cap has seen an addition of 240 million within the period, currently standing at $1.78 billion.

The cryptocurrency’s global volume dominance is held by ZBG in the trading pair ADA/USDT, accounting for 32.8 percent of the total. Other notable exchanges holding significant ADA volume are Huobi Global, Binance, Upbit, HitBTC, and OKEx.





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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

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JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





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