The digital currency ecosystem is undoubtedly off to a good start as a new week opens with the combined crypto market cap pegged above the psychologically important level of $1 trillion.
With the extreme volatility printed over the past few weeks, a trend above this level is evident: cryptocurrencies are showcasing strength and resilience in the face of harsh negative fundamentals.
Bitcoin (BTC) was amongst the digital currencies that has led the rally this weekend, soaring 2.49% to $22,751.06, according to data from CoinMarketCap. Ethereum (ETH) is also changing hands at $1,599.19 after printing as much as a 19.58% gain over the past 24 hours.
At the time of writing, the KuCoin Token (KCS), native to the KuCoin trading platform, was trading at $9.94, up marginally by 1.40% over the past 24 hours and by 8.68% in the Week-to-Date period. This growth is somewhat surprising, seeing the massive Fear, Uncertainty, and Doubts (FUD) spread by a now-deleted Twitter user, Otteroooo, who claims it has insider information concerning the potential insolvency of the trading platform.
While CEO Johnny Lyu swiftly allayed all fears and dispelled the rumours that retail investors did not panic, selling is one of the myths that has aided the green ticks being seen in the ecosystem at this time.
Retail Investors Staying on Guard
While it is true that the massive slump that has swept the digital currency ecosystem over the past few weeks is more damning to corporate investors, most retail investors are also significantly hurt.
With the industry showing good signs of recovery in the short term, retail investors might have been awakened to triggers fueling their impulse not to pass off on potential gains by this encroaching growth.
However, with more headwinds ahead as it relates to the US Fed’s potential of raising interest rates yet again, retail investors are arguably staying alert to avoid being caught off-guard.
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Author: Godfrey Benjamin