5% jump in Ethereum as the Cryptocurrency market begins to rebound
The market for the cryptocurrency has started to look positive now. This is a good news, with all the negative media attention that the crypto market has been receiving since the last few months. Cryptocurrencies such as Bitcoin Cash, Ripple, Ether and other tokens have seen a tremendous gain all in the range of 4 to 12 percent. This just goes to showcase that the cryptocurrency market has demonstrated a USD 13 billion increase, all in a span of just 24 hours. This increase in valuation is tremendous and is a major positive news in the world of cryptocurrencies.
Optimism in the mid-term
Investors are very much optimistic in the mid-term trend of the BTC and the cryptocurrency market. Ari Paul of Blocktower had earlier stated that, “Institutional investors are expected to take at least three to six months enter the cryptocurrency market with tens of billions of dollars in capital and until then, it remains uncertain whether the market can initiate a bull run back to the $800 billion region.”
He also noted, “Custody isn’t binary. It’s not like Coinbase custody will launch and suddenly every pension will throw $100m into BTC. It takes time for custody solutions to gain trustworthiness. But…I think we’ll have solid third-party custody by September of this year.”
The daily trading volume of Bitcoin remains well below the USD 5 billion mark. This is very low in comparison with that of the volume of BTC given into the fact that it was well over USD 10 billion only a few months ago. Looking into the minor movement of the price of the BTC and the low trade-in volumes of that of the other major cryptocurrencies, it is very much possible to state that the cryptocurrency market currently struggles to gain and maintain the same momentum in the next coming days. There should also be a slight correction to be observed as well.
Though the market is doing fairly well in the very recent times, traders are not very much confident in this growth as it is short term so far. If the market keeps rising and maintaining this momentum, there is likely to be a very potential and also the bubble like most industry experts who predicted that it would likely burst can only not happen. Looking into the cryptocurrency Tether, a crypto coin that is valued at the same price as that of the US dollar, shows that a large portion of the trader has started using it to hedge against the dollar in case if there is a significant drop that can happen unexpectedly at any given point in time in the coming near future. But note that most of the traders are opting into this option only in for the short-term.