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The week of optimism in the cryptocurrency market

Feb 11, 2019

The capitalization of most cryptocurrencies has increased. The three leaders in capitalization are BTC $63.99 billion, ETH $12.59 billion and XRP $12.51 billion. The capitalization of ETH and XRP is almost the same, but Ethereum’s trading volumes are almost six times higher than XRP. This indicates the depth of the introduction of ETH into blockchain ecosystem and cryptocurrency in general. The total number of billionaires increased to 12, having added Bitcoin SV (BSV) $ 1.15 billion and Cardano (ADA) $ 1.08 billion.

The growth leaders, among the TOP-15 cryptocurrencies by capitalization, were Binance Coin (BNB) and Litecoin (LTC), adding more than 30%. Outsiders were TRON (TRX) and Stellar (XLM), losing 1% and 3%, respectively.

Another hope supported the market

It’s a well-known fact that cryptocurrency growth requires an increase in physical or speculative demand. In other words, a significant capital inflow in this market is important. Most experts and crypto enthusiasts state that the next phase of growth can occur only if institutional investors are attracted. We also agree with this statement because the investment of very large funds can revive this market.  BTC capitalization is only $ 64 billion, trading volumes rarely exceed 10% -20%. Therefore, the purchase of BTC for $10 billion, which is not a lot for institutional investors, could blow up the market.

Many analysts have noted that approval of the Bitcoin ETF funds by the US Commodity Futures Trading Commission (SEC) is really important nowadays.

According to analysts, these investment funds will attract a large number of investors, including institutional ones. In fact, it is a substantial factor. The first wave of BTC growth occurred in the middle of July 2018 due to the expectations of launching an ETF for Bitcoin. At that time, the largest cryptocurrency by capitalization went up by more than 22%. Now we are witnessing another surge in customer activity owing to the likely approval of Bitcoin-ETF.

Information about the possible approval of Bitcoin-ETF appeared in Twitter of a journalist at Congressional Quarterly. He interviewed  Robert Jackson who is one of the four SEC commissioners and the representative of the Democratic Party. There is no full text of the interview yet, it will be published next week. However,  the journalist published a brief excerpt on Twitter.

“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”, – said  Jackson.

Jackson also reported that the Bitcoin ETF application from VanEck and SolidX is one of the most promising, unlike the Gemini application. All this information does not indicate that the SEC is ready to approve Bitcoin-ETF, but it is sufficient for short-term optimism in the cryptocurrency market.

This post has provided quite strong support for the cryptocurrency market and BTC in particular. The price of BTC rose by more than $150 or 4%. However, at the beginning of this week, the activity of buyers remains moderate. This may be because traders and investors want to receive confirmation of the post on Twitter.

Fundstrat expects BTC growth

According to a new forecast presented by analytical company Fundstrat Global Advisors, Bitcoin is waiting for a new price increase in 2019. The publication of the forecast almost coincided with the growth of the cryptocurrency market at the end of last week. This forecast is not about short-term growth, but about longer-term prospects.

According to Fundstrat analysts, there will be several incentives for BTC growth. Firstly, it will be the weakening of the US dollar. Nowadays, the correlation between USD and BTC is not obvious as, for example, the correlation between USD and Gold. Therefore, weakening of the US dollar in 2019 may support BTC. Secondly, analysts expect an increase in activity of institutional investors in the cryptocurrency market. A lot of crypto enthusiasts has counted on this since the summer of 2018. The forecast also emphasizes that Binance supports payments from bank cards. This greatly simplifies the process of replenishing deposits on Binance.

Analysts note several significant achievements of various companies. In their opinion, the success of these companies will attract large investors not only in cryptocurrencies but also in blockchain startups.

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