Weiss Crypto Ratings Boosts Bitcoin (BTC) Grade to an Overall B+
Weiss Ratings remains optimistic for the potential of digital assets, despite the recent volatility that saw prices gain and lose thousands within days.
Weiss Ratings is warming up to Bitcoin (BTC), increasing its overall rating to B+. Until recently, the leading coin was graded as a B. In the past few days, BTC also showed record activity on its markets, potentially signaling capacity for wider adoption and markets that are large and liquid enough.
The overall grade is marked A for the technology and adoption, but C+ for the risk/reward ratio. BTC remains extremely volatile, and it is still impossible to determine whether trading is entirely organic, as there are strong indicators of concerted market actions.
In the past week, BTC moved as high as $13,800, before crashing as low as $10,500, later to return to the $11,000 range. The return of volatility shows BTC can cause deep losses with unexpected behavior. Network congestion and technical problems also add to the risk.
Weiss Ratings has also warmed up to a handful of altcoins. Litecoin (LTC) grew its rating to a B, along with Cardano (ADA). EOS also inched up to a B rating after a recent demotion. The logic behind Weiss’ ratings combines various factors, though some coins are up on the charts due to technological achievements, while their trading weakens.
In the case of ADA, Weiss has issued positive statements, yet the asset’s price remains stagnant and the comments from cryptocurrency traders and investors remain negative. The Cardano project has also lagged in offering a functioning network with distributed apps and smart contract solutions.
The Bitcoin project has a few parameters that may be considered fundamental factors. Mining is one of those parameters, recently reaching peak activity. Network usage has also increased, though this coincides with the heightened trading hype, and may not be related to using BTC as a means of payment. Bitcoin mining activity remains at above 60 EH/s, and the network has a backlog of more than 30,000 transactions.