2019 is turning out to be a wonderful year for cryptocurrencies, far from what we witnessed in 2018. The truth is that ever since February, when cryptocurrencies recorded the first positive month, it has all been positive news from cryptocurrencies. The overall increase since January is 60% so far.
The 40 percent increase recorded in April has proved very significant to the current figures of cryptocurrencies. But the gains haven’t stopped, bitcoin among other currencies are continuing to experience gains. Bitcoin might settle at prices above $6,000 before the end of the week. Such figures were last seen over eight months ago.
Today, we are looking at some of the contributing factors to bitcoin’s excellent performance.
Fidelity’s Crypto Interest
The news that Fidelity was interested in crypto was long overdue. There were rumors that the multinational was planning to venture into crypto at some point in future. It has now been confirmed that it’s only a matter of weeks before Fidelity Investment enters the market. A source well known to Bloomberg has confirmed that Fidelity would be buying and selling bitcoin for institutional investors.
Such kind of news encourages a positive crypto atmosphere. Institutional interests in crypto are not to be taken for granted and do positively affect the market. Fidelity investment has over $2.4 trillion in Asset Under Management. With the current market capitalization at about $200 billion (traditional markets are way above) an interest by a few large multinationals like Fidelity can cause serious shifts.
In just a few hours after the announcement, bitcoin spiked 5 per cent.
Fundamentals And Technical Looking Better
Thomas Lee, a renowned bitcoin proponent and Head Analyst of Fundstrat Global Advisors have come out to support bitcoin in its next rally. Lee predicts a significant price improvement in the next couple of months. The analysts also add that several catalysts might propel bitcoin’s price to new all-time highs.
According to the analyst, there are a few signs that fundamental and technical characteristics are improving. Increased activity by crypto holders is another sign that things are about to get better for the cryptocurrency markets. Fundstrats also outlines 11 additional signs of an impending bull run. This means that the tough bear market of 2018 has ended.
In another mathematical representation, lee notes that the standard deviation from the S&P 500 index in 2019 is 2.5. A significant increase or recovery usually follow such a move. Lee pointed out that this deviation would take bitcoin to $14,000.
Positive Community Sentiments
The shifting community sentiments have also contributed to the recovering prices of bitcoin. Recent announcements by some traditional marquee companies venturing into the blockchain field have greatly attributed to the positive community sentiments.
Wall street journal recently announced that Facebook was seeking a $1 billion investment for its stable coin. Nike, on the other hand, expressed the intent of venturing into cryptocurrencies when they patented CryptoKicks. The next step could be creating its own coin with the same name.
There are other obvious signs of market recovery. However, there are critical levels to be reached before we can confidently declare a bull run. As for now, all indications are positive that good times are ahead of us.