19.03.202113:09 Forex Analysis & Reviews: Major cryptocurrencies halt their stellar rally: reasons and prospects

Global stock markets are experiencing hard times due to the onset of a new wave of coronavirus and slow vaccination. Unstable economic indicators are affecting large companies. Therefore, they are very cautious about their investments. Market uncertainty has also had a negative impact on the cryptocurrency market.

Major digital assets have been trying to break above the important physiological levels for almost a week but they are unable yet. Bitcoin is holding close to $60,000. However, it failed to consolidate near this level and yesterday it sunk by 2%.

Exchange Rates 19.03.2021 analysis

Ether is still hovering around $1,800, and its quotes have fallen by 3%. The situation may change dramatically after the upgrade to ETH2 and the transition of the blockchain to Proof-of-Stake (PoS). However, a lot of things may happen in the market before that.

Exchange Rates 19.03.2021 analysis

Ripple remains in the $0.44 - $0.47 area. Experts are sure it is unlikely to grow until the results of the trial. It dropped by only 0.5%. However, given the flat value of XRP amid positive market sentiment, this figure is quite high.

Exchange Rates 19.03.2021 analysis

Litecoin continues to move around the $200 level, but over the past 24 hours, the coin has weakened by 2.7%.

Exchange Rates 19.03.2021 analysis

Despite the fall in the quotes of the main cryptocurrencies, the fundamental background has been positive. For example, Visa has revealed details of its strategy to make crypto payments safer and more widely used through its partnership approach. The company said that it would bet on bitcoin, the main altcoins, as well as tokens and stablecoins that are backed by fiat currency. The implementation of the crypto strategy will begin this year. In addition, Grayscale launched a new 'Digital Large Cap Fund' tied to 5 top cryptocurrencies. "We're excited to further expand the universe of Grayscale's product offerings as interest in the digital currency asset class continues to grow. As a trusted and experienced manager, Grayscale is committed to creating investment structures that are familiar to qualified investors and provide secure access to this emerging asset class," Barry Silbert, CEO of Grayscale, pointed out.

As we can see, the crypto market has enough positive news to start rising upwards. However, this does not happen due to the fact that most of the operations with cryptocurrencies are carried out by retail investors. The interest of private traders is not enough for the market to rally and ignore economic instability. Large companies showed great interest in bitcoin when it declined to $55, 000. However, this was a small increase that could not boost the stable growth.

Therefore, on the back of the lack of interest from large companies, as well as weak economic indicators, the main cryptocurrencies remain flat. In the next few days, the world's governments will decide on lockdown. Perhaps, the dynamics of the main digital assets will become clear. So far, the entire cryptocurrency market will continue to fluctuate but will not show significant growth.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Artem Petrenko,
Especialista em análise
do Grupo InstaForex © 2007-2021
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