The relationship between Bitcoin and other digital currencies comes from several factors:
The relationship between digital currencies and Bitcoin? Why is Bitcoin going up when other currencies go up?
Liquidity and market size: Bitcoin is the most popular and liquid digital currency, and is often viewed as an indicator of the market as a whole. When Bitcoin moves significantly, the market follows because investors rely on it to determine the general trend.
2. Investor psychology: Many investors in digital currencies view Bitcoin as a leading indicator. If it starts to rise, they move to invest in other currencies (altcoins), and if it starts to fall, they exit the market or switch to Bitcoin or stablecoins.
3. Automated trading (Algorithms & Bots): Many traders use robots and software that rely on Bitcoin movements to make decisions about other currencies, leading to synchronized movements.
4. Historical correlation: Since the emergence of digital currencies, analysts have noticed that most alternative currencies move similarly to Bitcoin due to capital flows in the market.
5. Bitcoin Dominance: The more Bitcoin dominates the market (the percentage of its market value compared to other currencies), the more influence it has on other currencies, and vice versa when its dominance decreases.
Do not be afraid of a strong correction in the market. This is not a decline, but a correction. The currencies have returned to their normal price and will soar again.
Ethereum surges amid massive inflows into ETFS, government support for cryptocurrencies
The price of Ethereum (ETH) has surged by a remarkable 7.51% over the past few days, reaching $3,421 on January 24, supported by a wave of market optimism.
The move follows a broad-based rally in the prices of major cryptocurrencies such as Bitcoin (BTC) and XRP, which have also seen notable increases. These gains were further bolstered after the US President issued an executive order on January 23, aimed at strengthening US dominance in the digital asset space.
The executive order, which reflects government support for cryptocurrencies, has helped boost investor confidence and led to massive inflows into Ethereum exchange-traded funds (ETFs), with these funds bringing in $396.5 million in just six days.
With these favorable factors, many analysts expect Ethereum to continue its upward trend, with some forecasts suggesting it could reach $7,000 by Q1 2025, given continued government support and significant growth in the Ethereum network.
Choosing the best coins to invest in depends on your strategy and the risks you can afford. Since you plan to invest regularly and with small amounts ($50 per month), it is important to focus on coins with a good reputation and high liquidity. Here is a list of the top 5 recommended coins to invest in right now (January 2025):
1. Bitcoin ($BTC )
The most popular and stable cryptocurrency.
A good option for investors looking for a long-term investment.
2. Ethereum ($ETH )
The second largest coin by market cap.
Supports many decentralized applications (DeFi) and smart contracts.
3. Binance Coin ($BNB )
Used on the popular Binance platform.
Features low trading fees and wide-ranging applications.
4. Polygon (Matic)
Focused on improving the speed and efficiency of the Ethereum network.
It has great developer support and partnerships.
5. Solana (SOL)
It is known for its fast transactions and low costs.
It is a strong competitor to Ethereum in supporting decentralized applications.
Tips:
Diversify: Invest in different coins to reduce risk.
Research: Follow news and analysis to determine when to buy.
Secure wallet: Use a secure wallet to store coins.
$TRUMP is a digital currency that appeared on the market with the aim of exploiting the fame of former US President Donald Trump, and is often linked to political campaigns or aims to attract attention from his supporters or opponents.
Some points to consider before thinking about investing in it:
1. High risks: Like most digital currencies of a political nature, these currencies depend heavily on current events and media hype. Therefore, they are subject to large and unexpected fluctuations.
2. Objective and technology: Does the currency offer real value or an innovative technical project? Or is it just a currency based on speculation and media attention? If it is just a "meme coin", it is difficult to have a long-term future.
3. Liquidity: Liquidity may be limited, making it difficult to sell the currency or make profits.
4. Analysis and timing: If you see an opportunity to make quick profits while closely monitoring the market, it may be suitable as a short-term investment. But do not rely on it as a long-term project.
If you are interested in investing in it, it is better to allocate a very small amount of your portfolio, and not place high hopes on similar currencies.
Bitcoin loses more than 9% of its value with expectations of more.. and a collective decline in cryptocurrencies
The digital currency market recorded a significant decline during the past week, as the value of Bitcoin (BTC) fell by more than 9% to currently reach about $95,114.2, its lowest level since August.
This decline is due to the Federal Reserve’s statements about reducing the number of expected interest rate cuts next year, in addition to its confirmation that financial institutions are prohibited from holding Bitcoin, without any intention to amend this law.
In this context, Andrei Dragus, Head of Research in Europe at Bitwise, indicated the possibility of continued pressure on Bitcoin in the coming weeks as a result of the tight monetary policies followed by the Federal Reserve.
Dragus said: “The data of the Truflation spot inflation indicator indicates a new rise in inflation levels in the US economy, which poses a difficult challenge for the Fed to reconcile between limiting the effects of financial tightening and preventing the return of an inflation wave similar to what happened in the 1970s.” $BTC $ETH $SOL
When cryptocurrencies collapse, this is the right time to buy because stable currencies return to their value and more over time. Buy on the decline, not on the rise. #MarketCorrectionBuyOrHODL
What happened yesterday.. Why did the markets collapse and $900 million were liquidated? Yesterday, after the US Federal Reserve decided to cut interest rates by 25 basis points and issued its future expectations to cut only 50 basis points in 2025 instead of 100 basis points in previous expectations, while raising future targets for interest rates in the following years. This prompted the markets to price this monetary tightening from the Federal Reserve and negatively affected the stock market, digital currencies and gold, and led to the liquidation of nearly $900 million in the digital currency market. $TRB #RideTheKaiaWave $BTC
The Governor of Bank Al-Maghrib (Morocco's central bank) Abdellatif Jouahri announced on Tuesday that his country will be among the first countries in the world to license cryptocurrencies.
During a press conference in the capital Rabat, Jouahri said: "The legal framework related to licensing cryptocurrencies has been completed," noting that the draft law regulating the use of these currencies "is now ready."
He added: "We will be among the first countries to regulate the use of cryptocurrencies, and provide a clear and precise framework for users and investors," without specifying an official date for submitting the draft to parliament to begin the process of discussing and voting on it $BTC $ETH $BNB
The cryptocurrency market today witnessed a significant decline due to price correction after previous gains, large amounts of Bitcoin being sold by major players, in addition to regulatory restrictions and political tensions. Weak demand for Bitcoin funds also affected the market, although some cryptocurrencies recorded limited gains due to positive news of their own. $BTC $XRP $SOL
$XRP is one of the most prominent cryptocurrencies that could rise in value for three main reasons: First, any positive development in the legal case between Ripple and the SEC could boost confidence in the currency. Second, the increasing use of RippleNet globally is boosting demand for #XRP . Third, the overall improvement in the cryptocurrency market is leading to a collective price increase.
Nano$XRP : A Promising Future in the Cryptocurrency Market
Nano is based on the innovative block-lattice technology that enables fast transactions without fees, making it attractive to users and investors. Thanks to its advantages, many analysts expect its value to rise soon. Here are five main reasons for its rise:
1. Transaction speed and no fees: Nano offers an efficient solution for digital payments through instant transaction confirmation and no fees.
2. Environmental sustainability: The use of the DPoS mechanism makes Nano one of the most energy-efficient currencies.
3. Increasing institutional demand: Large companies are looking for environmentally friendly and fast solutions like Nano.
4. Limited supply: The limited amount of Nano in the market boosts its value as demand increases.
5. Continuous development: An active team and a supportive community are constantly improving the network.
With these factors, Nano stands out as a cryptocurrency with huge potential, making it an interesting option for investors.
The rise of the $TRB coin is due to new updates such as the release of Telliot Feeds, increased whale activity, and its use in decentralized finance. The network is also flexible and scalable to meet the growing demand, which has increased interest from investors and developers.
$XRP (XRP) price is fluctuating between $2.37 and $2.62 with a potential rally to $3 on institutional adoption and regulatory developments. However, the RSI is showing potential selling pressure, which could lead to short-term corrections before resuming the rally.