BTC Rises by 17% in Two Weeks as Major Tokens Experience Multi-Day Decline

According to reports, BTC has risen by more than 17% in the past two weeks, with prices briefly exceeding $29000 on Thursday, before falling back to around $28500. Major tokens such as ETH and XRP fell within 24 hours, suspending their multi day rally.

CryptoQuant: BTC holders are maximizing short-term profits

In recent weeks, Bitcoin (BTC) has seen a significant rise of over 17% in value, briefly passing the $29,000 mark before leveling off at around $28,500. Meanwhile, other major tokens such as Ethereum (ETH) and XRP have experienced a decline in the past 24 hours, suspending their multi-day rally.

Understanding the Reasons behind BTC’s Rise

The recent increase in BTC’s value can be attributed to a combination of factors. Firstly, there has been an increase in institutional investment and adoption of cryptocurrencies, particularly from companies such as PayPal, which introduced crypto trading on its platform in October. This has led to an increase in demand for BTC, driving up its value.
Additionally, the ongoing COVID-19 pandemic has played a role in the surge of BTC. With many central banks and governments around the world implementing quantitative easing measures and printing more money, investors have been looking towards BTC and other cryptocurrencies as a hedge against inflation.
Finally, the upcoming halving event in May, where the block reward for miners will be reduced from 12.5 BTC to 6.25 BTC, has brought renewed attention to BTC and its potential value in the long term.

ETH and XRP Experience Multi-Day Decline

Meanwhile, other major tokens such as ETH and XRP have seen a decline in value in the past 24 hours, following a multi-day rally. ETH, the second largest cryptocurrency, fell by 4% to below $700, while XRP, the third largest cryptocurrency, fell by over 10% to below $0.30.
The reasons behind their decline are varied. ETH’s decline could potentially be due to its recent high value, leading investors to take profits and sell off their holdings. Additionally, there has been a recent surge in activity on other decentralized finance (DeFi) platforms, which could be drawing investment away from ETH.
XRP, on the other hand, has faced a number of regulatory hurdles in recent months. The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, the company behind XRP, claiming that XRP was an unregistered security. This has led to uncertainty surrounding the future of XRP, potentially driving investors away.

Conclusion

Overall, the recent rise of BTC and decline of other major tokens such as ETH and XRP highlights the volatility and unpredictability of the cryptocurrency market. While there are a number of factors behind the rise and fall of different cryptocurrencies, it is clear that increasing institutional adoption and uncertainty surrounding regulation will continue to play a role in the market.

FAQs

1. What is the halving event and how does it affect BTC’s value?
The halving event is a key event in the BTC network where the block reward for miners is reduced by half. This reduces the supply of BTC and can potentially drive up its value over time.
2. Why has ETH fallen in value?
There are a number of potential reasons for ETH’s decline, including profit taking by investors and increased activity on other DeFi platforms.
3. Will the recent decline of XRP continue?
It is difficult to predict the future of XRP, particularly given the recent regulatory uncertainty surrounding the cryptocurrency. However, investors should be aware of the potential risks involved in investing in XRP.