Altcoins, Tokens Follow Bitcoin Higher as Labor Day Weekend Underway

The cryptocurrency market appears to be back on track after a minor correction on Thursday, with all major assets booking 24-hour gains as Labor Day weekend began.

Market Update

Cryptocurrency prices have fully recovered from their most recent bottom set on Thursday, with bitcoin, altcoins and tokens pushing higher in weekend trade. The combined value of all digital currencies in circulation reached a high near $233 billion on Saturday for a gain of nearly 4%, according to CoinMarketCap. Since bottoming near $220 billion on Thursday, the market has recovered 5.5%.

Cryptocurrencies excluding bitcoin accounted for the bulk of the rally; excluding BTC, the market rose $6 billion to $110 billion. As a result, bitcoin’s total market share dipped to 52.6% from a high of 53.3% during the previous session.

The bitcoin price continues to trade in a narrow range after re-taking the $7,000 handle on Friday. As the author reported Friday, bitcoin’s latest recovery has reduced the risk of a bearish reversal.

At press time, BTC had gained 1.4% to $7,048.

For the best performing altcoins, one had to go outside the top-ten. Monero and Dash, the 11th and 12th ranked cryptos by market cap, rose double-digits on Saturday. Monero’s XMR is surging after ICO consulting group Satis predicted it would be the best performing crypto over the next ten years. XMR currently sits at $119, having gained 10.2%.

Dash rose 14.4% to $212 amid reports of increased adoption in Venezuela, a socialist republic currently in the throes of a generational economic and humanitarian crisis.

Price Variations Decline

Although 2018 has been a volatile year for cryptocurrencies, the market has shown significant progress on a number of fronts, including price consistency on major exchanges. According to SFOX, a cryptocurrency trading technology company, 2018 has seen a decline in price variations on digital currency exchanges. The firm cited growing institutional interest in cryptocurrency as the primary reason for this important shift.

“Before institutional firms were actively trading crypto or heavily involved (before 2018) bitcoin price differences between exchanges varied as high as 4.5%,” said Danny Kim, head of growth at SFOX, as reported by Business Insider.

As SFOX noted, less price variation means greater stability for digital assets such as bitcoin, which can ultimately boost adoption among merchants.

If institutional adoption is the key to declining price variability, then there’s reason to believe that the market will stabilize even further in the coming years. Last month, New York Stock Exchange operator Intercontinental Exchange announced a new crypto venture aimed at boosting adoption at the investor and consumer levels. Around the same time, Boerse Stuttgart – Germany’s second largest stock exchange – said it will launch a new cryptocurrency platform.

According to Kim, high-frequency trading (HFT) companies could flourish in this environment as new technologies attract more speculators and market makers into the fold.

“Some HFT firms have been trading since crypto 2014, but have limited themselves because the infrastructure wasn’t there. Most if not all HFT firms require a FIX connection at an exchange in order to trade efficiently,” he said, as quoted by Business Insider. “Crypto exchanges haven’t offered FIX connectivity until recently.”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi