Categories: Crypto Review

FxPro: Strengthening Cryptomarket

This week may will be remembered for a reverse of crypto market to some optimism. Bitcoin has managed to get support at $3,300. Purchases are gradually gaining momentum, that allowed the price to exceed the $4,000 threshold. Needless to say that the BTC rebounds after an excessive oversold earlier.

In addition, a very positive sign can be considered that along with the increase in prices, trading volumes are steadily increasing too. Within three days from December 17, they grew twice to $7.5 billion.

The same is true for Bitcoin Cash. Over the past few days, the cryptocurrency has shown impressive growth of more than 77% from its lows of $90, and at the moment it reached about $160. The total market capitalization of the crypto for the week increased by $22 billion. Cautious investors should not rule out that to a large extent this flow is the money of short-term speculators who can quickly leave the market as well.

Inside of the crypto community reigns not so rosy expectations: many market participants consider the current growth as purely speculative and are confident that it will be followed by a pullback below $3,000. The youngest millionaire in the world, Erik Finman, who bought Bitcoins for $12 in his childhood, believes that Bitcoin (BTC) and Litecoin (BTC) are doomed to death in the long run after several phases of rallies and corrections. He relies on tech-friendly Ethereum (ETH) and Zcash (ZEC).

The positive impulse for a pretty battered crypto market was the news that the longest short on Bitcoin had finally closed. Famous bear Mark Dow opened it a year ago near highs. Together with an increase of almost 30% from recent lows, the symbolic boundaries of the bearish phase of the market have been passed. In the short term, this may boost the market with a signal to buy for some investors.

However, over the past year, cryptocurrencies from a hot investment still can’t turn into a significant market sector and make the scene in at least some areas. This means a turbulent future for the prices and the preservation of the market status as an ideal sector for speculation.

Alexander Kuptsikevich, the FxPro analyst

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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