Crypto Coins are in the Green; is it the End of a Bearish Trend?
Cryptocurrency markets are in the green after losing significant value in the past two weeks. The latest rally in the crypto prices aren’t receiving support from market fundaments; the upside is mostly attributed to price correction after the massive selloff.
Bitcoin’s price rose more than 8% on Wednesday to the $4,000 level after hitting this year a low of $3,500 on Sunday. The largest coin was down almost 40% in November despite the latest slight uptrend. Its market trades in the range of $70 billion – down $250 from the all-time high that it attained early this year.
Altcoins are also in the green. Ripple, Ethereum, and the rest of the top 10 currencies generated high mid-single to double-digit gains in trading on Wednesday. Ethereum has been among the most beaten coin during the last two weeks. It is replaced from the second spot as its market cap dropped sharply amid falling ICO and liquidity issues. Ether is currently trading around $116, up slightly from this year’s low of $105 that it touched on Sunday.
Stellar, Litecoin, and Monero are among the biggest gainers in the top 10 list. All these coins have generated double-digit gains during Wednesday’s trading. Consequently, the total market cap swells to 137 billion from this year’s low of $120 billion.
Is it the end of a bearish trend?
The crypto markets have the potential to move either way amid speculations and market reports. Traders’ sentiments support the latest rally; traders are capitalizing on the drop in Bitcoin and other cryptocurrencies prices. Reports are also showing that institutional investors are adding crypto positions after the market collapsed sharply in the last two weeks.
Some traders are optimistic that the SEC will approve Bitcoin ETF’s in the following months; they claim the crypto market is now in a position to fulfill the SEC’s requirements. The SEC has rejected previous ETF applications amid lack of security, custodial services, and price manipulation activities. Traders believe the entrance of Goldman Sachs, fidelity, and the NYSE in crypto markets would help in fulfilling the SEC requirements. However, it’s still early to say that the bearish trend that has wiped of more than $700 billion from crypto markets ended.
Do you believe cryptocurrency market hit the bottom last week? Is the rally in prices shows the sign of a bullish trend? Express your opinion in the comments section below.