Earlier this week, the valuation of the cryptocurrency market dipped below $248 billion, to a monthly low. Today, on April 12, the valuation of the cryptocurrency market increased along with the bitcoin price.
Over the past 24 hours, the cryptocurrency market rose by around $30 billion, to $298 billion, moving closer to the $300 billion mark. Last month, exactly 30 days ago on March 12, the valuation of the cryptocurrency market was $400 billion. The market is still down $127 billion from its monthly high and a strong short-term recovery period will be necessary for the market to rebound to its previous level.
The bitcoin price has followed the general trend of the market and has remained above $7,000 for 24 hours. Over the past 48 hours, the price of bitcoin has been stable in that region, and since April 9, the bitcoin price has not shown any major movements on both the upside and downside.
Bitcoin has not been able to demonstrate any form of stability ever since the entire market has been on a rapid decline since March 12. But, this week, the bitcoin price has shown some stability, sparking the anticipation of traders within the global market towards a potential short-term rally.
The stability of bitcoin throughout this week led to a strong bull run from $6,900 to $7,700, which occurred within a 30-minute window.
As demonstrated in the 1-hour price chart of bitcoin below, it is important for bitcoin to stay above the $7,500 mark in the next 24 hours, as it would provide bitcoin with a gateway towards the $9,000 mark. Over the past two weeks, the $7,500 mark has been considered by traders as an important threshold and support level for bitcoin to achieve to eye a potential move towards the $9,000 region.
A recovery to $9,000 would lead the entire market to become more optimistic about the short-term trend of bitcoin and other cryptocurrencies in the market. Already, several major cryptocurrencies like EOS have shown signals of mid-term recovery, given that the price of EOS has increased by more than 30 percent today.
Earlier this month, CCN reported that some of the largest institutional investors in the finance market including $8 billionaire George Soros, Rockefeller family’s venture capital fund VenRock, and the Rothschild have entered the cryptocurrency market.
The majority of investors were skeptical towards these investors entering the market when it has experienced one of the worst corrections in its history. But, historically, investors like Soros have tended to invest large sums of money in markets that are significantly down from their all-time highs, taking advantage of the downward trend.
“Bloomberg reports that Adam Fisher — who runs Soros Fund Management’s macro investing operation — has secured internal approval to begin trading cryptoassets. Fisher reportedly received the go-ahead to begin trading cryptocurrencies sometime during the last few months, which is notable given public statements Soros made about cryptoassets during the same period,” a CCN report read.
If it is the rise in over-the-counter (OTC) market volume in cryptocurrencies like bitcoin and Ethereum that is triggering the current bull run of bitcoin, the future of the market is highly optimistic.
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Last modified: May 20, 2020 8:53 PM UTC