This year is quite the opposite of 2018 in the cryptocurrency ecosystem. While last year dominated by adverse reports about cryptocurrencies and their plunging in value, this year has primarily experienced massive comebacks. In particular, Bitcoin has led a significant rally since early April, and it seems to continue growing.
According to data on CoinMarketCap, Bitcoin rallied 99.81% between April 02 and May 16, 2019, where it gained $4,145.9 to settle at $8,299.71. Before April 03, Bitcoin had not touched the $5,000 resistance level since late November 2018. However, the cryptocurrency hit $5,127 April 3, and the rally has been steady ever since.
Source: CoinMarketCap
Cryptocurrency dominates the sector where it makes up 56.3% of the value of the crypto market capitalization, according to the latest figures on CoinMarketCap. Therefore, the surging confidence in Bitcoin is a vote of confidence in the whole cryptocurrency industry.
Altcoins rally
Bitcoin is not the only cryptocurrency enjoying the positive market sentiment. Data from Barchart.com shows that in the last five days, Digital cash, Ethereum and Bitcoin Cash have performed quite impressively against the US dollar. Notably, Digital cash changed by +10.17% while ETH rallied 7.32% in the same period. Bitcoin Cash saw its value increase by 5.08% difference.
According to an OTC brokerage HiveEx Cryptocurrency Landscape Report, the “Crypto Winter” which gripped the market in 2018 seems to be over. Per the report, the market is recovering —spring is here, and crypto is blooming.
Supporting the “Crypto Spring” thesis, HiveEx noted one significant trend. Despite the long bear run, new cryptocurrencies have launched, which significantly added to the trading volume. Notably, on April 3, 2019, the 24-hour trading volume for the cryptocurrency sector hit record highs of around $88.9 billion. The increase is striking, and it reflects the mounting interest in the industry.
Widening appeal for cryptocurrency
According to a Finder survey, some market watchers anticipate Bitcoin to close 2019 22% higher than the current levels, which puts it at around $9,500.
Interestingly, the considerable interest in the digital currency comes on the back of the US-China trade war, which has disturbed the assets markets. As such, investors are diverting funds to more profitable sectors where crypto tops the list. Notably, the Shanghai Composite Index and the Hang Seng Index are down 16.52% and 7.01%, and respectively, investors anticipate the further decline of the trade war. So, cryptocurrencies are becoming widely appealing as a hedge against the implications of the battle.
The next big rally in cryptos is upon us. The question is will we see $10,000, $15,000 or $20,000 before the end of 2019?
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