Article by Joseph Young CCN Edited by CryptoClarified
The price of bitcoin, the most dominant cryptocurrency in the global market, has recovered beyond the $9,000 for the first time since March 14, exactly a week ago.
It is still quite early to determine whether bitcoin and other cryptocurrencies will be able to sustain the current momentum in the upcoming weeks. While bitcoin has rebounded over the past few days, it has only recovered from its price drop that occurred in mid-March. Two weeks ago, the price of bitcoin peaked at $11,600, and the cryptocurrency is still $2,600 away from reaching its monthly high.
Last month, the price of bitcoin dropped to the $5,000 region and after a speedy recovery to $10,000, it dropped to the $7,000 region. This week, bitcoin price recovered to $9,000, and is moving towards entering the $10,000 region once again. While the market has been extremely volatile, bitcoin has gradually recovered from $5,000 to $7,000, to $9,000, even amidst several minor and major corrections.
The strong performance of bitcoin and other major cryptocurrencies like Ethereum and Cardano has led the entire market to regain its losses from earlier this month, as the valuation of the cryptocurrency market increased from $280 billion to $350 billion in merely 48 hours.
Throughout January to March, bitcoin suffered the third worst correction to date, as the price declined 70 percent from $19,000 to the $5,000 region. Yet, unlike its previous two corrections, bitcoin has managed to gradually rebound from major drops.
The large drop in the price of bitcoin was only intensified and exaggerated by negative media coverage, especially from traditional economists and bankers providing baseless price predictions and false information in regards to the regulatory frameworks around the cryptocurrency market.
Almost immediately after the global financial watchdog FSB announced at the G20 summit that major governments are planning to sustain existing regulations and no additional regulations or restrictions will be imposed on the global cryptocurrency market, cryptocurrencies started to recover from their losses.
Alternative Cryptocurrencies Rally
Bitcoin has consistently been the best performing cryptocurrency over the last two weeks. Today, alternative cryptocurrencies rallied, as cryptocurrencies like ICON, better known as South Korea’s Ethereum, increased 60 percent due to various partnerships and airdrops.
ICON (ICX) has been listed by Bithumb, the largest cryptocurrency exchange in South Korea, as its 10th cryptocurrency, causing the cryptocurrency to increase in value and volume.
Ethereum, which has not performed well for over a week, has also demonstrated a 9 percent rise in price, along with Cardano, Litecoin, Zcash, Nano, OmiseGo, and Aion.
The vast majority of casual traders and newcomers are strongly influenced by panic sell-offs and fear of missing out (FOMO). When investors in the public market outside of the cryptocurrency space continue to see the cryptocurrency market and digital currencies within it recover in the range of 5 to 10 percent on a regular basis back to its previous levels, FOMO will drive new investors into the market, allowing short-term rallies to occur.
According to our Featured Writer- Former Wall St. Fund Manager & Professional Trader @altcoinadvisory (who called the correction back in December when Bitcoin was above $19,000) “We aren’t out of the woods just yet.. but we’re getting closer.” On a promising note, his opinion is that after this correction and a period of consolidation we could resume a bull run like 2017. He sees Bitcoin above 30,000 to finish 2018.
Another standout analyst and top ranked professional trader and analyst @RonnieMoas has stated that “there is 200 Trillion dollars tied up in stocks, bonds, gold & cash. I am not excited about putting my money into any of those 4 options right now. If 1% of that 200 Trillion finds it’s way into cryptocurrencies over the next 10 years you’d be looking at a 2 Trillion Valuation. 12X what it is today.”
That’s a great point. If 1% of that money finds it’s way into cryptocurrency, or 1% of Pensions invest into Bitcoin (over 35% have already expressed serious interest) then we could easily see Bitcoin above 30,000.
According to analysts and insiders the general sentiment seems to be that cryptocurrencies at this point in time carry a lot of risk, but with that risk is the potential for huge return. “I don’t think the average investor realizes the speed at which these markets could move with institutional capital.” According to Michael Novogratz “The Institutionalization to this space is coming, and it’s coming faster than most realize.”
There are several ways to get involved if you have the risk tolerance. You can buy and hold the basic few cryptocurrencies with the ease of a mobile app, join an exchange for more options, or if you prefer to have a professional actively manage it you can decide to invest in a fund like any other asset class.
We have a detailed guide on buying cryptocurrency and exchange reviews under the “Education” and “Resources” tab on our website header. This will help if you’re looking to manage you’re looking to do the buying/selling and managing your portfolio yourself. Be sure to read up on these, and also how to store and protect your digital assets. As always, do your due diligence before deciding to invest.
With cryptocurrency and blockchain technology becoming incredibly popular amongst individual and institutional investors across the globe, many have been leaning more towards investing in hedge funds relating to cryptocurrency instead of the individual cryptocurrencies. If you would rather stay out of the day to day management, actively managed cryptocurrency hedge funds are a popular options among individual accredited investors. Here you can find The Top Performing Cryptocurrency Hedge Funds
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The price of Bitcoin and other cryptocurrencies are highly volatile. It is common for prices to increase or decrease by over 20–100% in some coins in a single day. Although this could mean the potential for huge profits, this also means the potential for huge losses. The same goes for CryptoCollectible games which can be wildly speculative. DO NOT INVEST ALL YOUR MONEY IN CRYPTOCURRENCIES. Only invest money which you are willing to lose.
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