What happened
The prices of Polkadot (CRYPTO:DOT), Polygon, (CRYPTO:MATIC), and XRP (CRYPTO:XRP) were all rising today, likely as investors have started returning to cryptocurrencies after a short retreat last week.
Polkadot was up by 7.6%, Polygon jumped 7.6%, and XRP had gained by 4.8% over the past 24 hours, as of 10:50 a.m. ET.
So what
The prices of Polkadot, Polygon, and XRP started sliding late last week after news agencies began publishing information about the new omicron coronavirus variant. The news caused the price of Bitcoin to tumble, taking many cryptocurrencies — including Polkadot, Polygon, and XRP — along with it.
Image source: Getty Images.
Cryptocurrency prices often move in sympathy with the price of Bitcoin and that appears to be the case again today for Polkadot, Polygon, and XRP. As Bitcoin rose by about by 1.8% over the past 24 hours, the coins starting bouncing back as well.
Now what
The price drop of Polkadot, Polygon, and XRP last week and the subsequent rise over the past 24 hours is a good reminder that the cryptocurrency market remains very volatile.
One thing to keep in mind is that while the prices of these coins are up today, it’s entirely possible that they could tumble again if the price of Bitcoin falls.
All of which means that crypto investors should anticipate some volatility and take a long-term investing approach with digital coins.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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