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The cryptocurrency market is constantly changing. That’s why the price of cryptocurrencies today will be so different when compared to tomorrow; the market is influenced by a wide range of factors, both internal and external.
If you want to successfully trade and invest in crypto, being able to read and understand the market is essential. How is the market looking as we head into Q4 2023? Read our guide to find out.
The Price of Bitcoin
In the early days of crypto, there were only a handful of assets to speak of. Things couldn’t be more different today, there are now tens of thousands of cryptocurrencies out there, from industry titans like Ethereum to quirky meme coins like Shiba Inu.
With so much information out there, it can be hard to cut through the noise and accurately evaluate how the industry as a whole is doing. However, there is one trick that you can use to do so. Look at Bitcoin.
Bitcoin was the very first cryptocurrency and remains by far the most valuable. It’s the industry’s flagship asset and is incredibly influential. What this means is that Bitcoin can be used as a barometer to measure the health of the sector. When Bitcoin is doing well, the crypto market is also doing well. When crypto is struggling, other coins likely are as well.
This isn’t a hard and fast rule, and there are exceptions, Bitcoin can be used as a general guide. So, let’s take a look at how Bitcoin is performing and think about what it means for the crypto market as we head into Q4 2023.
Bitcoin is currently valued at $26,999.10. Over the past month, the asset has fallen by 2.6%, and it has dipped by 4.76% over the past six months. However, it has grown by 62.6% since the start of 2023, and by 37.8% when we compare it to this time last year.
Bitcoin’s steady growth over the past year is certainly a positive sign. It suggests that the market is healthy and performing well. Investors are confident and are willingly putting money into assets like Bitcoin.
Other Big Cryptocurrencies
Of course, cryptocurrency isn’t all about Bitcoin. There are lots of other coins out there, so let’s take a look at a few to see whether they reflect Bitcoin’s positive growth.
After Bitcoin, the second largest cryptocurrency by market cap is Ethereum. Widely considered to be Bitcoin’s biggest rival, Ethereum is an extremely advanced cryptocurrency supported by a sophisticated blockchain platform.
Ethereum is currently trading at a value of $1,673.89. Much like Bitcoin, it has seen depreciation over the past month and six-month periods of 3.21% and 6.65% respectively but has grown by 39.5% since the start of the year and by 25.29% on a year-on-year basis.
Another of the crypto market’s biggest assets is XRP. This has followed a similar trend, growing 55.60% since the start of the year. However, XRP has seen a slight year-on-year dip of 0.06%.
Is the Crypto Market Bullish?
A bullish market is one going through an extended period of growth. Generally, bull markets follow a period of decline and demonstrate growth of at least 20%.
By analysing the crypto market and studying the performance of the top assets, all the signs point towards a bull market. This will be welcome news for investors and traders, especially since the difficulties the industry has faced over the past couple of years.
Bull markets can be triggered by a number of things but are generally the result of positive economic conditions around the world. As we see interest rates begin to fall after the economic crisis at the start of the year, investor confidence is increasing. This leads to more activity in the crypto market and, as we are seeing now, can lead to a bull run.
What Does This Mean for You?
What does a bullish crypto market mean for you? The answer depends on your particular situation.
If you are new to the world of crypto and want to buy some of your own for the first time, a bull market can be an expensive time to start, as prices will be higher than usual. However, if you get in early at the start of the run, you could make a profit quickly by selling later when prices rise.
If you are an investor with crypto stored in a wallet, a bull run can be an incredibly exciting time. Don’t be tempted to sell at the first sight of a bull market, you’ll regret it when you realise you could have waited and sold your assets for more.
Be patient and study the market carefully. While waiting is recommended, you don’t want to wait too long and miss the peak. Timing is everything, so ensure you are prepared to sell when you will benefit the most.
Conclusion
Things are looking good for the crypto market as we head into Q4 2023, with signs pointing towards a possible bull run. Now would be a good time to invest, as prices could continue to rise in the future. If you’re holding some crypto, wait before you sell in case prices rise any further.
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