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Crypto market wrap: Altcoin prices trend downward with bitcoin

By Monte Stewart


Updated

Hand holding phone
Altcoin prices trend downward with bitcoin on Tuesday as the world’s largest cryptocurrency dipped below $20,000. - Photo: Getty Images

Altcoin prices trended downward on Tuesday as bitcoin’s heady times ended.

The axiom about altcoin prices rising and falling with bitcoin (BTC) proved true as leading digital coins declined with the world’s largest cryptocurrency, which fell below $20,000. All figures based on CoinMarketCap data.)

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ATOM to USD

Ripple and Cardano slip

Cosmos (ATOM) and Tezos (XTZ), both down about 12% as conventional markets closed in North America, suffered the biggest hits.

Ripple (XRP) and Cardano (ADA) felt less pain as they both declined about 4%. Cardano’s drop came despite a report from Zy Crypto on Tuesday that the coin can now be accepted as payment at seven million businesses through On-Demand Open Object (Odoo) software.

On Monday, crypto investment firm Grayscale announced that it is maintaining Cardano as one of its top holding, along with Solana (SOL).

SOL to USD

Extensive scrutiny

Cardano has come under extensive scrutiny lately as investors await its highly anticipated Vasil hard fork, which is viewed as a potential price catalyst. Vasil was delayed for a month as Cardano’s developers worked out bugs in the system and is now expected to occur around the end of July.

BTC/USD

67,793.15 Price
-0.240% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,457.26 Price
-1.600% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.62 Price
+2.080% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.14 Price
-1.960% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Vasil has drawn both praise and criticism as Cardano investors sing its benefits but tech-savvy blockchain users contend that it will pose glitches in smart contracts, the automated agreements that enable transactions to be completed.

ADA to USD

Are heady times over?

Bitcoin’s dip below $20,000 followed a strong week. According to Bloomberg, the showing was bitcoin’s best in more than three months.

 

Trend continues

Continuing a trend prevalent since the beginning of 2022, the crypto sector appeared to be influenced by macroeconomic factors. The bitcoin and altcoin price drops coincided with a stock market decline in advance of a US June inflation report.

“I’m not surprised to see prices going down with commodity prices and the overall sense of weakening growth -- money being tighter and there’s less money to slosh into crypto,” Brian Nick, chief investment strategist at Nuveen, told Bloomberg. “That’s not a shock. There’s a lot of volatility.”

Markets in this article

ATOM/USD
ATOM/USD
6.5307 USD
-0.2049 -3.160%
BTC/USD
Bitcoin / USD
67793.15 USD
-159.25 -0.240%
ADA/USD
Cardano / USD
0.43115 USD
-0.00703 -1.620%
SOL/USD
Solana / USD
180.0398 USD
-4.0106 -2.200%
XRP/USD
Ripple / USD
0.61623 USD
0.01237 +2.080%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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