Bitcoin appears to have recovered slightly from a dip at the start of April which saw the price fall to $38,779 on Monday. This represented an 11% fall over the previous 14 days, but the price of BTC has now risen comfortably above $40,000.
Cryptocurrency experts have pointed to a number of potential causes for the short-term hit suffered by the famously volatile coin, but the recent tax returns deadline seems like the most likely. Ahead of tax day on 18 April many investors may have redeemed some of their crypto holdings to pay their taxes, pushing the price down as a result.
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“We had BTC and ETH rebound literally right after the stock market close on Monday,” said Tom Dunleavy, senior research analyst at cryptocurrency market intelligence firm Messari. “It’s not clear whether that was algorithms or discretionary traders, but overall tax selling seems to be the underlying reason.”
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Which cryptocurrencies have seen the biggest gains in the past month?
Investing in cryptocurrency can be an extremely risky business with sudden price swings for all but a few of the most stable coins. However there does remain the possibility of serious profit and a few coins have shown huge growth in the past month. All figures listed are taken from leading cryptocurrency exchange Coinbase and are correct as of 21 April 2022.
Of those with a market cap of at least $1 billion, ApeCoin recorded the largest increase, with a 45.56% rise over the past month. ApeCoin describes itself as a “governance and utility token used to empower a decentralized community building,” and claims to be “at the forefront of web3.”
Other major risers over the past month were Dogecoin and Solana, which recorded increases of 17.24% and 16.87% respectively.
Dogecoin is often termed as the first ‘meme coin’, meaning that it was originally launched as a satirical joke to mock the grand plans of Bitcoin and other early cryptocurrencies. However software developments have made it a legitimate investment in the eyes of some and it continues to receive considerable interest.
The success of Dogecoin has spawned a number of copycat coins, potentially rivals, which seek to benefit from the meme culture of cryptocurrency trading. Shiba Inu uses the same dog mascot that is used on Dogecoin and those involved with the coin have specifically labelled it as a ‘Dogecoin-killer’.
In a crazy 10-month spell in 2021 Shiba Inu rose by around 121,000,000%, but with nothing substantial to differentiate it from the scores of similar meme coins, there is little to suggest that a prolonged rise is on the cards. However it did record a 6.5% increase over the past month.