Crypto Markets Flip Green as XRP, Zcash Lead
Cryptocurrency prices flipped higher Sunday, as altcoins and tokens continued to recover from last week’s double-digit selloff.
Crypto Market Update
All 20 of the top cryptocurrencies reported gains heading into Asian trading. In terms of percentage gains, XRP was among the top performers, clombing 7.8% to $0.2836. The third-largest cryptocurrency remains capped below the 30-cent mark, which previously served as a long-term support.
Ethereum gained 6.9% to $195.95. The so-called “developer’s cryptocurrency” has recovered more than 10% from last week’s three-month low.
Litecoin rose 5.9% to $77.01, EOS added 6.3% to $3.76 and Cardano climbed 7.1% to reach $0.0506.
Beyond the top-20, Zcash was a standout performer, gaining 10.1% to $53.00. The privacy coin has been in a severe downtrend since late June, having lost more than 50%.
Despite their rally, altcoins have yet to regain significant market share relative to bitcoin, which still accounts for more than 68% of total crypto holdings. The bitcoin price rose 2.3% on Sunday, where it last traded just below $10,400.
The total value of all cryptocurrencies improved to $272.1 billion, improving from a low of $255.7 billion on Thursday.
Jackson Hole Symposium Takes Center Stage
Cryptocurrency traders have been paying attention to the financial markets much more closely in recent weeks after it became apparent that bitcoin and gold were moving in the same direction – presumably as a hedge against risk. Although bitcoin’s status as a safe haven is still controversial, it possesses many of the same characteristics as gold. Those who view bitcoin as “digital gold” were pleased to hear that the digital asset moved in lockstep with bullion over a three-month period.
However, bitcoin’s digital-gold status came under scrutiny last week after its price plunged nearly 13% while bullion advanced by around 1%. The assets diverged as the yield on the 10-year U.S. Treasury dipped below the 2-year equivalent for the first time since before the financial crisis. For bond investors, this is perhaps the clearest indication that recession looms over the horizon.
Against this backdrop, crypto traders are observing trends in monetary policy to determine just how badly central banks plan to increase the money supply. Central-bank stimulus, combined with dismal economic growth and heightened U.S.-China trade tensions, could be the perfect storm for bitcoin to continue higher.
The Jackson Hole Symposium – an annual gathering of central bankers and academics hosted by the Federal Reserve – will commence later this week in Jackson Hole, Wyoming. Keynote speeches by Fed Chair Jerome Powell and other policymakers could shed light on how officials view the global economy. The remarks will also feed into expectations about future policy changes.
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. Chart via CoinMarketCap.