It is no secret that the crypto market is currently in the midst of a significant market downturn. The bears have held the market firmly ever since Elon Musk confirmed that Tesla would no longer accept Bitcoin over fears of the leading cryptocurrency and its environmental effects.
Of course, Musk and Tesla aren’t the only ones that deserve blame for the downturn. There have been signals from countries like China, which has cracked down on mining and reinforced its hard stance on cryptocurrencies by asking banks and payment processors not to service crypto businesses.
With all of this, cryptocurrencies experienced a pretty rough month overall. The market was really down, and several large-cap assets lost double digits in value percentages.
However, it appears that things might be looking up once more. Several top assets are now moving ahead, signaling that the market downturn just might be over.
The past week has been rough for Bitcoin. Everyone understands that the asset is the main catalyst for a bull or bear market, and most other assets tend to follow its price action. After dropping from $30,000 earlier this week, Bitcoin has been on a healthy rebound. It broke through $33,000 earlier today, and there is significant hope that it will be able to cross $35,000 before June comes to an end.
Bitcoin was especially impressive as the asset crossed the $40,000 mark over the past week as well. This would mark the first time since the downturn that it would reach such heights. If anything, this should make investors much happier.
Ether and BNB Make Investors Proud
Ether is the second most valuable digital asset and the closest thing to having a value as high as Bitcoin. While it tries to be entirely independent, the truth is that Ether still gets a lot of its value from price actions relating to Bitcoin. So, when the recovery came and Bitcoin started to soar, so did Ether.
Last week, Ether’s value went as high as $2,500 as it looked to stay on the high. Remember that the asset’s all-time high was at $4,338 just before the crash. The asset was also able to pass several of its key technical indicators, showing that it was ready for an uptrend in its value.
Much of Ethereum’s value also comes from the adoption of the Ethereum blockchain. With areas like the decentralized finance (DeFi) space and non-fungible tokens (NFTs) using the Ethereum blockchain significantly, there is no doubt about the fact that Ether will see bigger gains going forward.
Binance Coin was one of the hardest-hit coins as the downturn came. The asset had traded up to its all-time high of $691, but the downturn dragged it back as low as $250.
Like many large-cap assets, BNB has been able to come back quite strong. It hit as high as $400 last week, joining many of its mates above the CoinMarketCap list to make big gains. The biggest benefit of BNB comes in the form of association with the Binance Smart Chain.
The Smart Chain is one of the biggest contemporaries of Ethereum. Many have complained about the Ethereum blockchain and its lack of scalability for a long time now. So, there are a lot of upsides as many could start using the Smart Chain. Thus, BNB will be on the move.
Not Out Of The Woods Yet
All of this isn’t to say that things have gotten entirely better. The crypto market is still suffering from a lot of last month’s doldrums, and investors worry that there won’t be any big jumps for months.
So far, there has unfortunately not been much positive news about crypto. Everyone was elated when El Salvador announced that it would accept Bitcoin as legal tender. Still, even that was unable to lift Bitcoin and the market out of the bearish trend. So, it appears that everyone would have to make do with small, gradual price increases for now one.
The most important piece of advice to prospective investors would be to continue focusing more on assets linked with high-value projects. In the long run, assets like these will be the ones to deliver the best value. As more people get into crypto and more projects build on their infrastructure, platforms like Ethereum and the Binance Smart Chain will see greater adoption. Thus, it will be impossible for them to falter when it matters the most.