FxPro: Small ripples on the surface for Crypto prices with powerful underflow
January 15, 2019 @ 15:40 UTC
After big moves at the end of last year the crypto market again experiences a lull. Over the past day, BTC added more than 3% and trades around $3,700, offsetting recent losses. Rebounds and corrections occur within two to three percent, which are relatively small fluctuations for a crypto market.
The community once again is waiting for news about the regulation, as was the case in summer and autumn, when the volatility of price rates went to zero. The altcoin market, as always, is following the benchmark cryptocurrency.
What are the reasons for the expectations and new hopes of experts and the community?
The market sees an increase in the largest Bitcoin wallets and an increase in the number of transactions in the network of the benchmark cryptocurrency from 250k in December to 330k at the moment. Increased activity is perceived as preparation for the rally: on January 11, the previously unknown address that bought 130k BTC ($ 481 million) became the second largest wallet, another unidentified address began on January 15 with a transaction of 107k BTC ($ 396 million), immediately becoming the 5th largest wallet.
Other large purchases of bitcoins: 48k BTC ($ 178 million), 20k BTC ($ 74 million), 12k BTC ($ 44 million) also began to appear in the list quite often, which may indicate the appearance of some kind of insider information that could potentially expand the market. All of these addresses also appeared in the last few weeks. For many wallets, these transactions are the first and only ones.
This may be evidence that big business finds current levels of Bitcoin attractive for purchases. This can also occur as a result of the “whales” inside about the approach of a positive assessment from the regulators side. Either all of this is nothing more than a dramatization in order to create a new wave of excitement in the absence of a fundamental basis for further growth.
As before, you should be careful about the statements of market participants, especially extremely positive ones. In 2017, the expectations were clearly overestimated, and it is possible that market participants are again overly optimistic, passing wishful thinking. Cryptocurrencies are a fairly new market sector, and they are relatively easy to manipulate.
Alexander Kuptsikevich, the FxPro analyst