Over the past 24 hours, the cryptocurrency market has gained $19 billion, from $248 billion to $257 billion, as major cryptocurrencies including bitcoin and Ethereum recovered from their recent losses, as bitcoin price rose 4%.
On April 6, the bitcoin price fell from $7,000 to $6,500. Traders were anticipating a potential drop to the yearly bottom at $6,000, as bitcoin price remained at the $6,000 mark for several hours before rebounding to $6,600. If the bitcoin price had not rebounded from that level and sustained the $6,500 mark, the price of bitcoin could have dropped to the $6,000 mark.
However, as time passed, bitcoin started to demonstrate some buy volumes, and it picked up momentum on April 7. Eventually, within a 24-hour span, the bitcoin price increased from $6,500 to $6,950.
The 15-minute candle chart of bitcoin on April 6 evidently showed the end of its corrective rally from $6,600 to $7,500, which could have been key to bitcoin’s short-term recovery towards the $8,000 region. In the upcoming days, bitcoin could eye the $8,000 region if it can rise back again to $7,500 and test the $7,800 level.
Throughout today, bitcoin has shown some signs of recovery, and if this rally takes bitcoin to the $7,000 region, it is likely that bitcoin could eye the $7,500 mark, as it had earlier this week.
Generally, the market has also become optimistic towards the entrance of institutional investors in the cryptocurrency space. In December, investors expected a wave of retail traders to enter the bitcoin sector through the bitcoin futures market. But, volumes on the bitcoin futures market have been virtually non-existent, and the demand from institutional investors from the west has been a disappointment.
This week, George Soros and Soros Fund, a fund founded by the legendary $8 billion investor, announced that it is preparing to trade cryptocurrencies, as Bloomberg reported. Over the past three months, several large hedge funds like Fortress have exited the space. If new capital comes into the market in an extremely volatile period like this, it could help bitcoin to recover from its previous losses.
"Adam Fisher, who oversees macro investing at New York-based Soros Fund Management, got internal approval to trade virtual coins in the last few months, though he has yet to make a wager, according to people familiar with the matter. A spokesman declined to comment," read Bloomberg's report.
Since April 4, Ontology has been the best performing alternative cryptocurrency against bitcoin. WIthin a three day span, the value of Ontology has nearly doubled against bitcoin on Binance, the world’s biggest cryptocurrency exchange. Several altcoins such as ICON have also performed well against bitcoin, leading to excitement within the cryptocurrency space.
Still, although several altcoins have outperformed bitcoin in the past few days, it is uncertain whether the altcoin season will arrive in the short-term. SInce January, bitcoin’s dominance over the cryptocurrency market has intensified, and it will likely increase as new capital flow into the space.