Crypto Market Accumulates Positive Updates
FxPro Financial Services Ltd | Feb 22, 2019 07:21AM ET
Growth without dips or just calm
Bitcoin is getting closer to the $4K threshold, but the growth momentum at the beginning of the week has faded away. However, given the weak dynamics of recent months, even this looks like good news, since we managed to avoid correction after the rally.
There is a view that many market participants simply want to take profits after touching an important level of $4K. Altcoins show almost zero dynamics over the past 24 hours, holding the reached positions.
Stablecoins everywhere
The stablecoins race continues: the Japanese banking holding Mizuho Financial Group (T:8411)MHFG) also launches its token called J-Coin along with a mobile payment application. Next, you need to understand whether the market really needs such a number of stablecoins. It is very likely that during the fierce competition, several of them will survive, as was the case with mobile operating systems. It is not enough to be first, it is vital to be the most comfortable.
Steady transaction growth
The current dynamics of the crypto market is gradually being analysed. So, DataLight found that the Bitcoin trading volumes increased to the levels of April 2018, and the daily volume of transactions reached the levels of January 2018. In addition, this indicator has been growing since the middle of last year, which coupled with other positive news stimulate positive market sentiments. It is likely that speculators have hopes for new highs.
Not all tests passed
However, many experts still urge not to be too inspired by the current crypto rally. Stabilization and the uptrend often begin only after all the negative events happen and large-scale correction of errors is done.
The SEC is faced with the huge task of clearing the market of undesirable elements; this laborious and related to unpopular decisions work can cause the market to feel a sense of depression and provoke corrections.
Waiting for the weekend
In the meantime, it remains to enjoy some positive lull, and certainly, market participants are waiting for a new weekend, since the last 2 times the market has shown a significant rally. Of course, this does not mean that this time will be the same.
Alexander Kuptsikevich, the FxPro analyst
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