FX.co ★ The news is good, but the results are deplorable: why prices of cryptocurrencies are plummeting

At the beginning of this week, it seemed that the main cryptocurrencies have overcome the price correction and are beginning to systematically restore their previous positions. This was also facilitated by a positive information background, but as a result, the market has to observe constant jumps in the value of individual digital assets.

Bitcoin crossed the $50,000 mark and tried to gain a foothold on these indicators to continue its growth. However, the market showed instability again, and by March 5, the value of the first cryptocurrency fell by 3,000, stopping at $47,000. Despite the sharp drops in quotes, the coin can resume positions, which is facilitated by positive news.

For example, the CEO of the Kraken exchange said that in ten years, the value of bitcoin will increase to $1 million and replace the dollar as the most stable and template currency. Also, good news comes from South America, where the old bank of Colombia has launched a test operation with cryptocurrencies.

Ethereum is in a deplorable situation, stuck between $1,400 and $1,600. Despite the trust in the asset on the part of the Dubai-based company, which will invest in research and development, ETH is in a real crisis. In the near future, there are no prerequisites for rapid or systematic growth.

The Ripple token is also going through difficult times, despite the news about testing a new version of the blockchain, which will make it easier for central banks of countries to create their own cryptocurrencies. XRP tried to cope with the volatility, but on March 5, it lost ground and fell back to $0.452.

The situation with Litecoin is similar to that of Ethereum. The coin made a jump to $180 but fell sharply to $172. The cryptocurrency shows stability and a desire for growth, although, within the range of $170-175.

Based on the current indicators of cryptocurrencies, there is an unpleasant situation when a positive news background, an increasing amount of research, and investment injections do not contribute to the growth of crypto assets. Sharp price drops after a certain time of growth show the high volatility of digital coins, which, in relation to the price correction, does not leave the assets a chance to hold on to the positions of two weeks ago. The market adjustment is becoming protracted, which indicates further sharp jumps in the value of major cryptocurrencies.