In the past 48 hours the crypto markets have seen significant gains led by the mother of all crypto’s Bitcoin. This latest bull surge has really stirred up the waters in the crypto streets. It has also animated all those invested in the space with speculators, investors and commentators all trying to make sense of this sudden surge.
Various explanations have been touted, from an April fool’s day joke about the SEC approving a Bitcoin ETF, which was refuted by that projects founder, to growing institutional crypto adoption. The present surge could indeed be the switch that turns off the crypto winter state that has persisted for the past 15 months.
While the crypto markets are not time bound and are operational 24/7, an important point was made by eToro’s Mati Greenspan; the senior analyst believes that the sudden crypto Bull Run was set off by the Asian crypto market. Greenspan made his thoughts known by putting out a tweet that read;
Judging by the timing, it looks like the pump originated in Japan or South Korea.
New York is asleep, Europe is just opening their eyes. This is the Asian trading session.— Mati Greenspan (@MatiGreenspan) April 2, 2019
According to Greenspan, Bitcoin prices began to soar at approximately 4:30 UTC; he speculated that the Asian spikes in Japan, and South Korea happened at approximately 14:00 pm Local time. Many analysts in the crypto ecosystem attributed the latest crypto surge to growing mainstream crypto adoption, not Greenspan though.
In an interview with Bloomberg, the senior analyst said that during the crypto winter, the market evolved in a sure and rapid pace, he also stressed that coin prices are no indication for market growth. The senior analyst had previously said that Altcoins were bouncing back from their December lows, which according to him boosted their valuation, while Bitcoin displayed stable movement in the market.
He had also speculated that the Altcoins were outperforming adding that Bitcoin will only cross over to a bullish state if it is able to breach the $4,600 mark. Bitcoins latest surge contradicts what a lot of well-known speculators predicted, which was that 2019 would be dominated by the Altcoins.
Off course the latest surge has a lot of crypto enthusiasts excited with a lot of them getting on social media to do their little victory laps.
This excitement is quite warranted after what has felt like an eternity of market downturns. This off course does not minimize the gains that have been realized over the past year in terms of institutional adoption and developer projects.
We also have to contend with the question of whether this is a legit bull run, or are we about to see the prices fall back to previous lows? Great question which only the market charts can answer in the next coming days and weeks.
Image courtesy of Pexels