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The best week of this year

Apr 8, 2019

All TOP15 cryptocurrencies by capitalization showed a good return on the previous trading week. As a result of a solid price increase, now 15 cryptocurrencies have a capitalization of more than $1 billion. Over the past week, three coins got into the list of billionaires: IOTA (MIOTA) + 15% Dash (DASH) + 20% and Monero (XMR) + 24%.

According to CoinMarketCap, the total market capitalization increased to $184.5 billion. A new record was also set in BTC trading volumes – $ 24.8 billion. We highlight that the previous maximum was $23.3 billion, on January 5, 2018. At that moment, the BTC price was being kept at $17000 which is 3.4 times higher than the price while updating the historical maximum in trading volumes.

This indicates the market’s readiness to continue the growth in the longer term.

Investors are coming back to the cryptocurrency market

The rapid growth of the cryptocurrency market occurs in growing volumes, so it is logical to assume that investors are coming back. It is still difficult to say whether there are institutional investors among them or if there are just private investors (small investors).

Kane Warwick, CEO of  Australian payment processing Blueshyft said that fiat money is returning to the cryptocurrency market. According to him, the volume of fiat deposits coming to crypto exchanges is almost the same as in May 2018.

“This is a new inflow of Fiat to the crypt, retail buyers are returning to the market,” said Warwick.

According to Warwick, the inflow of fiat money is one of the best indicators reflecting the organic interest of market participants” and the desire of the latter to invest in cryptocurrency.

“Trading volumes are easy to manipulate. However, it is much more difficult to falsify data on the flow of money entering the ecosystem “.

This statement is quite convincing.   Recently, we get enough evidence that the absolute majority of exchanges significantly overestimate trading volumes.

Peak trading volume at CME

The total trading volume of BTC, according to the CoinMarketCap, increased approximately by 2.5 times. Since April 1, 2019, BTC trading volume only slightly exceeded $10 billion, but on April 3, this figure reached $24.8 billion. At the same time, a surge in activity of investors and traders was much higher at the Chicago Commodity Exchange (CME).

On April 1, the volume of trading in futures on BTC was 2162 contracts, and on April 4 this figure reached 22542 contracts. The growth by more than ten times was systematic on 2, 3 and 4 April. Considering that the size of the futures contract at CME is 5 BTC, 22,524 contracts correspond to 112,710 bitcoins or more than $560 million. The previous peak was recorded on February 19 – then the trading volume of bitcoin futures was 18.3 thousand contracts. At that moment, the price of BTC was at the level of $11100, which is approximately  $1015 billion.

Time for optimistic trends

Over the previous week, a lot of optimistic forecasts appeared regarding the growth of BTC. It is not surprising, because the largest cryptocurrency rose in price by more than 25% over the week.

Tom Lee, the co-founder and managing partner of Fundstrat Global Advisors, made another statement regarding the price of Bitcoin. This time, he believes that the fair price for BTC should be around $14000.

“The year 2018 and the beginning of this year was difficult for Bitcoin, but now it has gradually begun to grow. According to our data, this is due to a number of positive points [in the industry]. A large number of old Bitcoin whale wallets have become active again, there is a slow but steady accumulation, ”he said in an interview on CNBC.

In general, Tom Lee believes, at the moment bitcoin is being traded significantly lower than its real value, which, according to him, should be around $14000. In particular, he noted, extraction of one bitcoin is now on average worth about $4000- $5000, however, in the period of the growing cryptocurrency market, it should be sold 2.5 times more expensive than the cost of mining, which also leads to the figure of $ 14,000 indicated by it.

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