Cryptocurrency Sentiments Have Been Improving Over the Past Six MonthsMay 2, 2019
Big names making it to the cryptocurrency market place only matter if the tokens get used for the intended purpose. Venture capitalists are continuing to step into the market.
With an increase in speculative interest, the transaction volumes of Bitcoin have increased over 3 months. BTC is actively used by those looking for decentralized, low-fee, cross-border transactions.
The price of Bitcoin rising in April, marked the third straight month in gains. Everyone is contemplating on what next about the Bitcoin. The price was fluctuating mostly between the ranges of $5,000 and $5,500.
Joe DiPasquale, CEO of cryptocurrency hedge funds at BitBull Capital, stated, “The market continues to be somewhat indecisive as to the direction it should go.” He further added, we have not yet entered the bull run despite the price of Bitcoin rising steadily.
DiPasquale opines that it is only after the price crosses the $6000 and stays there for a while it will be possible to say that the bull market has started.
However, other financial analysts focused mainly on positive developments in the market.
The sentiments have been improving over the past six months. The mentions of Bitcoin and Ether were the highest since January 2019. There was an overall increase in the search rates for the term Bitcoin. This number continues to be higher than the search numbers of October and early February.
John Todaro, Director of Digital Currency Research at Trade Block, stated that “Notional Trading Volume for the Bitcoin across the largest of US exchanges will reach its highest monthly levels since December 2018.”
According to Todaro, previously investors were looking for excuses to sell, and now they are looking for excuses to buy.
The Tether solvency concerns have been influencing the cryptocurrency market over the past few weeks in a negative way. Since the market has an improved sentiment now, the effects of this news are less than it would have been if the same news hit the market six months before.
Regardless, investors will have to watch what the Tether situation is doing to the trends. It might become necessary to deal with the solvency concerns by raising capital.
If, Bitfinex/Tether does not get to accomplish the capital raising due to regulatory restrictions or lack of market appetite; then, there might be greater redemptions.