Why April 2018 Was A Great Month For Cryptocurrencies?
April was a great month for cryptocurrencies, at the start it was hovering at $263 billion. The original coin that accounts the largest chunk of trading’s volume in its market was nearing a bottom. The drawdown on prices was spreading from bitcoin to other cryptocurrencies. Ether crashed below $400 to hit its lowest price since last year in the month of November. Ripple, the third most valuable cryptocurrency flirted declines due to Tax-related selloffs by traders contributed to the pressure.
The markets survived and at the end of April, it looks cheerier. The market had a value of $424 billion, in percentage, it increased 61% in the month of April alone. That figure looks even more impressive when you consider that cryptocurrency markets lost 40% of their total value in March. Bitcoin has climbed past $9,000 a figure it crossed last December. Other cryptocurrencies are also on a rising course. Even futures trading for bitcoin on Cboe broke records recently.
But the markets survived the trough and the end of April looks cheerier. The total market capitalization for cryptocurrencies is $424 billion, as of this writing. On a percentage basis, the figure translates to an increase of 61% within the month of April. That figure looks even more impressive when you consider that cryptocurrency markets lost 40.3% of their overall value in March. Bitcoin has scaled past $9,000, a figure it crossed last December. Other cryptocurrencies are also on an upward trajectory. Even futures trading for bitcoin on Cboe broke records recently. A series of developments, from the end of tax season to sales by bitcoin whales, were responsible for the surge.
Is It Time To Celebrate?
Nope! The price of bitcoin skyrocketed by 225% in a month. In fact, except for a short-term surge on April 12, cryptocurrency prices have moved carefully as the wave of bad sentiment surrounding bitcoin and other cryptocurrencies. Investors are also establishing the idea of cryptocurrencies as evidenced by the increase in trading volume for bitcoin futures.
But investors expecting a run-up in prices similar to the one that took place last December may be disappointed. The appeal of cryptocurrencies as an investment instrument has washed-out. Regulation and the entry of institutional investors, who will bring liquidity into the ecosystem, it is expected to further fill down volatility and sudden price movements.
There’s still money to make in cryptocurrency markets. “Thomas Lee of Fundstrat Global Advisors has predicted a price target of $20,000, an appreciation of roughly 122 percent from today’s prices, for bitcoin by the middle of June.”
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