Crypto trade market has been rejoicing the latest surge of
Crypto trade market has been rejoicing the latest surge of prices which saw most of the tokens make double-digit gains over the past week. The total market capitalization has breached the $185 billion mark and analysts believe the market trends would follow the same pattern as that of 2017.
The recent price rally caught everyone by surprise since analysts have predicted the next bull run to take charge towards the latter half of 2019. However, the green in the market came almost after prolonged crypto winter of 2018, and it turned out to be a pleasant surprise.
However, the current price rally in the crypto trade market also shows how market trends and sentiments have changed over time. Let us look at various observations discovered during the recent surge and compare it to the previous trends to understand the difference.
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Bitcoin is Still The King, But Other Altcoins Establishing Their Identity
It is quite common in decentralized space that the trade market piggy ride the momentum of Bitcoin, and the pioneer of cryptocurrencies is known to be the trendsetter of the crypto space, while rest of the altcoins follow the suit.
It was evident during the 2017 price peak where Bitcoin was the biggest gainer both in terms of token price and market capitalization. The trend continued during the longest crypto winter as well, where Bitcoin lost more than 80% of its market capitalization and the major altcoins followed the suit where they either lost the same share or even more.
However, the recent price rally suggests the trends of the crypto trade market is changing. The recent price rally saw Bitcoin and other altcoins made double-digit gains but Bitcoin was not the biggest gainer as Bitcoin Cash, Litecoin and Ripple made unprecedented gains.
Litecoin actually doubled its price from what it was valued at the beginning of the year. While Bitcoin cash after breaking its upper key resistance level of $180 surged more than 50% and currently rallying around $300 price point. While Litecoin is rallying around the $88, facing the resistance at $90.
The reason for a sudden price rally is being speculated to be started by an anonymous whale pumping the market with a huge load of Bitcoin, which triggered the trading bots to execute several trades simultaneously creating a ripple effect.
Other theories suggest that the prices rally was started due to an April Fool article claiming that the SEC has approved Bitcoin ETF which was being postponed for months. However, there are no certain or specific reasons.
Instead of Bitcoin being the flag bearer, most of the altcoins believe that the various development projects and impending hard forks, as well as the block reward halvening, are the main reason for the surge.
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Bitcoin Cash and Litecoin the Biggest Gainer
Bitcoin Cash has shifted towards the long term goals rather than focusing on just one aspect of its token. The BCH network has a load of development work going on, right from Dapp hosting to tokenization, just like Ethereum. Its SLP consensus is being used by various businesses to create their own token.
Apart from the tokenization and Dapp hosting, BCH networks future contracts are another reason for such massive gains.
Litecoin, on the other hand, has been bullish since the beginning of the year and analysts believe the block reward halvening is the major cause for such an unprecedented rise. It’s quite common that the community turns bullish as the network heads towards the reward halvening. Block reward halvening cut the mining rewards in half and thus a bullish nature increasing the token prices are quite common.
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Wall Street Also Played a Major Role
The biggest change in the market sentiments has been the foray of traditional players in the crypto space. One analyst suggests that the price surge on April 2nd saw the Bitcoin Future contracts trading volume on wall street gain significant volume and momentum. Although these contracts are dealt in fiat and there is no Bitcoin trade, still the public sentiment plays a major role in driving the price.
An increased volume of Bitcoin Future contracts suggests public sentiment is bullish and it has a clear impact on the prices of the cryptocurrencies.
Final Thoughts
Crypto trade market’s changing sentiments and foray of traditional financial institutions are a sign of a maturing market. 2018 bearish market has cut down the price volatility significantly and this has made the market just right for wall street investors to invest.
Even major financial institutions like JP Morgan and Barclays have decided to either launch their own stable coins or offer a number of crypto trading services. This is a clear indication that not only the crypto trade market sentiments are changing, but it is strengthening as well.
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