While the American Stock market has already taken multiple hits this week, Bitcoin is on a winning streak. The Dow Jones and Nasdaq went down another 1,49 and 2,25 percent on Wednesday, meanwhile Bitcoin started Thursday with another 8 percent run to the upside. Bullish!
On Thursday, Bitcoin surpassed $4,000 for the first time in two weeks, even rallying past the $4,100 level after losing some steam. With that, Bitcoin and the rest of the cryptocurrency market are breaking away from the negative sentiment that they had been in for weeks.
The overall crypto market recovered from approx $100 billion to $133 billion within 4 days, with the world’s best-known cryptocurrency climbing almost 8 percent again today. It is not sure if the market has found a bottom at $3,130 or that the rally is caused by the oversold conditions that the market was in.
Mati Greenspan, a senior market analyst at social trading platform eToro, told CNBC:
“The surge on Monday represents a strong push off the key support level of $3,000 per coin.”
If this is true, then this would be good news for investors, knowing Bitcoin likely found a bottom after months of downturn. Furthermore, the eToro analyst said that the sudden rally was likely the result of traders closing their short positions ahead of the holidays.
Changpeng Zhao interview with Bloomberg
Meanwhile, Changpeng Zhao, the CEO of crypto exchange Binance, expressed his doubts on Wednesday in regards to a potential Bitcoin bottom. The CEO of the largest cryptocurrency exchange is not sure yet if the 2018’s crypto correction phase has already ended.
Amongst other things, speaking to Bloomberg, CZ said:
“I think the price is a powerful attraction for a lot of speculators, but the field is going to grow by builders, the guys who build applications and adds to the adoption of cryptocurrencies in the long-term.”
Although Bitcoin can still drop below $3,000 in the near future, many investors are eagerly waiting for 2019 to kick in. Many crypto enthusiasts have pointed out the following events that could shape the crypto markets in a positive way:
- Bakkt launch on the 24th of January
- VanEck Decision Deadline of February 27th, 2019
- Nasdaq launching BTC Futures contracts in Q1 of 2019
- Ethereum’s Constantinople upgrade in January
- Fidelity’s interest in digital assets
- A new year with fresh expectations