Cryptocurrency Market Settles after Massive Surge
Cryptocurrency coins rallied early this week and have now settled down, but did they retain their gains?
Quick overview
- The crypto rally initiated by the signing of the GENIUS Act has begun to slow down, with some coins experiencing minor retreats.
- Bitcoin (BTC) has seen little movement, losing 0.71% over the past week, while Ethereum (ETH) surged by 13.14%.
- The GENIUS Act aims to make stablecoins more accessible, potentially increasing the overall acceptance and safety of cryptocurrencies.
- Despite recent gains, many coins like Dogecoin and Cardano have experienced slight declines, indicating a shift in market momentum.
Live ETH/USD Chart
The crypto rally began when the GENIUS Act was signed into law. However, that rally has started to slow down, with Wednesday crypto trading showing some minor retreat for a number of coins.
Bitcoin (BTC) has moved little with the recent crypto rally, actually losing 0.71% over the last week of trading. Meanwhile, Ethereum (ETH) surged with an increase of 13.14% in the same timeframe. Many other crypto coins climbed very high as well as a result of the GEBNIUS stablecoin act becoming law.
ETH/USDThat act makes stablecoins easier to access, and it is expected that the move will make cryptocurrency more widely available, more generally accepted, and safer to use. Many investors already use stablecoins as a way to hold onto their current assets without losing value while they wait for the right amount to transfer their stablecoin assets over to decentralized currencies like Bitcoin or Ethereum.
The GENIUS Act should make all that easier, and the crypto market surged when the GENIUS Act was finally approved. This has been the result of months of work from crypto lobbyists as well as the Trump administration. President Donald Trump famously campaigned on the promise of being a pro-cryptocurrency President.
Is the Rally Finished?
When the cryptocurrency market started to soar recently, several coins jumped by 20% or more, including Solana (SOL), Cardano (ADA), and Dogecoin (DOGE). Many of these have lost some of those gains since then, and over the last two days, there has been some retreat from the market.
Dogecoin lost 6.44% over the last 24 hours, for example, but this coin is still up by 22% for the last week. DOGE may have gained more than most, but it is not exactly an outlier here. Cardano ended its 7-day period with an increase of nearly 10%, even though the coin lost 5% in the last day.
These are the kinds of changes we are seeing in the market- massive rallying over the last week, but a significant drop in the last day or so. The momentum is leaving the crypto rally, but that could change, and we could see the market surge again. For now, though, the majority of recent gains have been retained.
The real outlier is Bitcoin, which surged to an all-time high on July 14th. During the recent crypto rally, Bitcoin moved very little, fluctuating between $117K and $119K while other coins gained incredible value. This shows stability for Bitcoin for now, and the coin is benefitting from that stability by not losing much value after the rally settled.
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