The rebound in the cryptocurrency market continued last week, with the overall market cap increasing by 18% to $380 billion. Bitcoin rose 9% to $8,800 while ether price increased 18% to $600.
With the breakout lasting for around 10 days so far, many are saying that the bull market is back. The cryptocurrency market has been largely trend-driven and reflexive, which means that the more people believe in something, the more likely that it will happen.
It is kind of crazy when you consider how the renewed optimism all began from a short squeeze just 10 days ago. This shows that sentiment in the cryptocurrency market shifts quickly and dramatically. Investors need to pay very close attention if they want to time the market well.
The tax season for a number of countries has just passed, which provides another reason for people to be bullish. However, we believe that a lot of people do not actually (or accurately) report their capital gains from trading cryptocurrencies. Therefore, it is highly likely the fund outflow from cryptocurrency to pay for taxes is lower than some may think.
Another observation is that, during this rebound, altcoins have been outperforming bitcoin. Normally, when the cryptocurrency market is at the beginning of a rebound, bigger coins tend to appreciate quicker than smaller ones. However, it is not the case this time.
As a result, we believe it is important to have a balanced portfolio between the major coins and smaller altcoins so you can take advantage (or be protected) in different market conditions.
MasterCard Patents Blockchain Tech To Combat Fake Identities: https://cointelegraph.com/news/mastercard-patents-blockchain-tech-to-combat-fake-identities
AWS Is Making Hyperledger and Ethereum Easier to Use: https://www.coindesk.com/aws-making-easier-use-hyperledger-fabric-ethereum/
Samsung Is Looking Into Blockchain For Its Huge Global Supply Chain: https://www.bloomberg.com/news/articles/2018-04-15/samsung-jumps-on-blockchain-bandwagon-to-manage-its-supply-chain
Coinbase Buys Earn.com, Gaining Top Talent in the Process: https://bitcoinmagazine.com/articles/coinbase-buys-earncom-gaining-top-talent-process/
Crypto Exchange Kraken To End Services In Japan, Cites Rising Costs Of Business: https://www.bloomberg.com/news/articles/2018-04-17/cryptocurrency-exchange-kraken-pulls-out-of-japan-citing-costs
China’s Telecom Giant Huawei Launches Blockchain-As-A-Service Platform: https://cointelegraph.com/news/chinas-telecom-giant-huawei-launches-blockchain-as-a-service-platform
New York Attorney General Launches Inquiry Into Cryptocurrency Exchanges: https://bitcoinmagazine.com/articles/new-york-attorney-general-launches-inquiry-cryptocurrency-exchanges/
Crusher of the Month – ICON: https://crushcrypto.com/icon-crusher-apr-18/
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.