The last three days have been marked by the long-awaited growth of the entire cryptocurrency market. Bitcoin began its growth on Sunday from around $3,600 and today is trying to overcome the $4,000 mark.
The growth of 10% in three days on the cryptocurrency market has never been something surprising, but the rise of the last days instilled hope in the bulls, tired of the protracted decline. Moreover, many leading cryptocurrencies not only followed the flagship but also overtook it in growth rates.
Today, the price of Bitcoin on the Bitfinex exchange has overcome the psychological level of $4,000, and at the time of BTC, it exceeded this mark on most major exchanges and indices. Now, on most index charts, the rate of the first cryptocurrency has fallen lower, but the potential for further growth remains. Thus, the cost of the first cryptocurrency is approaching a record high of the current year – $4,168 per BTC. Also, according to the tradition, all crypto actives from the top twenty by capitalization pulled over Bitcoin:
Ether (ETH), again won second place in XRP for market capitalization, which has increased by almost 25% in recent days and exceeded $15 billion, while the price approached $150.
Ripple (XRP) rose 8.3% and is currently trading at around $0.338. Over the past 7 days, his growth was the weakest of the first five – about 12%, which is why the token and gave second place to the air. And this is despite positive fundamental factors, including the support of several large banks. Only this week, the Japanese SBI spoke of plans to develop projects using RippleNet, and BankDhofar, the second largest bank in Oman, began using RippleNet for cross-border payments to India.
Litecoin has increased the lead over Bitcoin Cash, securing a place in the top five largest cryptocurrencies. But the EOS cryptocurrency demonstrates a really strong dynamic over the past 24 hours and 7 days. At the time of publication, the cost of EOS came to a mark of $3.7 dollars, increased by more than 15.7% per day and approximately by 30.5% per week.
The total capitalization of the cryptocurrency market rose to 135 billion dollars after February 8 stalled at around 120 billion. At the same time, the bitcoin dominance index has already remained above 50% for half a year, today it is 51.7%. Daily trading volume is also gaining momentum, although today the figure has dropped from $36 billion to $35 billion.
There are no obvious fundamental reasons for such confident growth of the whole market. Most likely, it was provoked by a general positive news background and a long time suppressed by the activity of “bulls”, so it would be wrong to single out any one event. Separately, it should be noted that the most active growth was shown by the leading decentralized application platforms (Dapps) – Ethereum and EOS. Obviously, many investors associate the future of cryptocurrency in this very direction.
Recent growth factors
One of the main catalysts for the growing dynamics is the information that this year the SEC approval of the US Bitcoin exchange funds (ETF from Bitwise with the support of the NYSE and VanEck / SolidX with the support of CBOE) may finally become a reality. Now two of the four members of the SEC Governing Council have expressed support for cryptocurrency funds, although they do not give any definite predictions on the timing.
Last week, JPMorgan, the largest US investment bank, launched JPM Coin’s own cryptocurrency for small cross-border payments between corporate clients. The fact that a traditional financial institution of this level began to use cryptocurrencies, even if it is of a closed type, says first of all that the attitude of the authorities to cryptocurrencies is changing and global regulation is not far off.
Also recently, the Indonesian Supervisory Board for the Futures Market (Bappebti) announced new rules for trading cryptocurrency futures. Immediately after this, many supporters of digital assets noted that this step indicates the entry of cryptocurrencies into the “early phase of regulation”.
In addition, yesterday a well-known supporter of bitcoin and venture capitalist Tim Draper said that in five years only criminals will use fiat money because cryptography is becoming more and more popular. He also noted that Bitcoin is safer than the American dollar and compared the cashing of money from Bitcoin with the exchange of gold for shells.
Correction or fracture?
These and other factors have already led to the second jump in the cryptocurrency market by a dozen percent up since the beginning of the month. Now the main question of concern to all investors is whether the upward movement will continue, finally breaking the downward trend, or is this just another correction on the way down?
Prediction of cryptocurrency rates has always been a thankless task, and many authoritative community representatives have repeatedly made mistakes in their assessments. As for the technical picture, the closest of the important medium-term levels look like: $4,250 – the top reached when Bitcoin tried to break up at the end of December, and $4,500 – surely overcoming this milestone, Bitcoin will come out of the decline corridor, starting in April last year.
Nevertheless, on the long-term chart, current attempts at recovery still look very timid, and for serious growth, Bitcoin needs to gain strength that can be given to a variety of factors. Among them are technological (development of Lightning and other scaling technologies), political (ETF approval and mitigation of regulation in general), and financial (launch of Bakkt and other platforms for institutional investors). If all of them, or at least some of them unite, the cryptocurrency will enter a new wave of growth, the top of which is now difficult to imagine. Otherwise, the stagnation in the market may continue for a long time.