The document was signed under the auspices of Abcripto, the association of cryptocurrency companies in the country. The purpose of the agreement is to establish operational practices and compliance standards that all members must adhere to. Prominent cryptocurrency companies in the country that signed the code include Foxbit, Ripio, Bitcoin Market, and Novadax. Transparency or distributed ledger technology and growth of venture capital investments are the main factors driving market growth.
After all, the altcoin circulating ubiquitously with a total supply of 50 million and a handful of trades traded for $1 doesn’t mean that each of those coins is worth $1. It is also promising to analyze the links between the technological implementation of blockchain networks and the formation of the prices of a how does crypto market cap increase particular cryptocurrency that we have only noticed. The results indicate that younger and older cryptocurrencies have a certain and different return and volatility behavior as detected by clustering techniques. This maturity effect was previously observed in bitcoin’s financial behavior (Drozdz et al. 2018).
The most commonly used moving averages are used for periods of 10, 20, 50, 100 or even 200 days. This makes market trends more visible, with a 200-day moving average considered a support level during an uptrend and a resistance level during a downtrend. A bullish movement refers to a bullish price movement driven by bulls, which are the buyers of an asset. A bearish movement is a downward price movement that is trampled by the bears, which are the sellers of the asset. Technical analysis can help traders assess price trends and patterns on charts to find trading opportunities.
Each of the clustering algorithms helped reveal different aspects of the cryptocurrency market. In addition, we showed that the combination of the different clustering results was valid to detect the main trends in the cryptocurrency market. Cluster partitions along with prototypes and cluster description provide a manageable summary in financial terms across the market. It is also possible to obtain more advanced profiles by examining the intersection of clusters. In addition, the analyst or investor can search for specific cryptocurrencies and determine the clusters to which they belong, and how far away they are from the prototypes, according to the degree of inequality used for each grouping method. Corbet et al. took an in-depth look at the high growth of the cryptocurrency market and its heterogeneity since 2014.
This will help to improve the profile of the clusters with additional descriptive information and to find associations with other variables. In our analysis of 2018 and 2019 for a longer period of time, we found that the market can generally be segmented into a few groups, and even given the intersections, the 6 most populations account for 75% of the market. With regard to the associations between clusters and descriptive characteristics, we found associations between some clusters with volume, market capitalization and some financial ratios, which could be explored in future research. In this study, we analyzed the cryptocurrency market in 2018, that is, all cryptocurrencies traded in 2018, using a new method that integrated three different cluster algorithms. Given the significant presentation of the data, cluster prototypes are useful for obtaining an informative summary and visual representation of the most important trends in the market. The comparative study of cryptocurrency markets and traditional financial markets is also an important area of research.