April has been a very positive month. Leading up to Easter, we had predicted that actually, April was just an extension of March, with markets down and a very depressing outlook over. Moving past the Easter period, things did start to look somewhat more positive. The positive notion, turned into a positive trend, which in turn turned into what now seems to be more of a positive surge.
There are millions of powers at work behind all of this. A surge in cryptocurrency is encouraged by a wealth of different entities, a number of discourse working behind the scenes, realistically, we can’t put the cause of this down to a single entity, it is rather a mixture of luck, timing and eventualities.
According to Bloomberg, the positivity through April has caused the cryptocurrency markets to rise overall by a stunning 75%. This is in just four weeks…
Ethereum, Bitcoin Cash and Ripple are leading this charge, making the biggest gains according to prices from coinmarketcap.com. Even more interestingly, according to Bloomberg, the trading volume of Bitcoin has topped $2Billion in the 10 biggest exchanges during the past 24 hours. There is sadly no information regarding which exchanges this includes, however a quick check on coinmarketcap.com should rectify this.
* Image from Bloomberg.com
The statistics from Bloomberg show just how sharp April has been with regards to cryptocurrencies. Bloomberg rightly point out that even with this steep increase in mind, many currencies still trade below 40% of their record high, as recorded (generally) in December and January.
Even with the 40% threshold in mind however, you can’t say this month has been unimpressive.
The 75% jump overall needs to be the start of something far bigger, if the top currencies are set to make a full recovery anytime soon. Indeed, as it stands it does look as if we will see a recovery take place sooner, rather than later but, we need to consider what exactly will happen once recovery status is achieved and all currencies meet 100% of their optimum value.
Will the currencies continue to grow, or will we see another crash?
If you think about the FUD that spread through the March depression, if we see currencies peak again soon, you might expect a lot of people to sell off and be done with cryptocurrencies forever, it seems sensible right. You can’t blame people for asking the question, ‘will this happen again’.
People that bought in at the start of the year need a spike to take place in order to get some sort of positive return from their investment. People who bought in early and held on during the last boom, only to see things tail off may not want to take a second risk.
Overall, a 100% recovery does not mean the state of the markets will recover entirely, there is a risk that actually, things will become more volatile and more uncertain as the unstoppable FUD starts to take over.
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