Cryptocurrencies Love Holidays

The second weekend in a row, the crypto community live with a long-forgotten sense of hope for the return of digital currency growth.
Alexander Kuptsikevich
Investing and stock market concept gain and profits with faded candlestick charts.

Over the last 24 hours, Bitcoin (BTC) added more than 5%, trading around $3,950. If the benchmark cryptocurrency can overcome the $4k threshold and stay above this level, this can create a new optimism impulse for investors in Bitcoin and the entire crypto market as a whole. The main altcoin Ethereum adds more than 8% during the last 24 hours and trades around $150. It is worth noting that the rally began with the ether.

There is no positive fundamental news around Bitcoin or Ethereum, except the Nasdaq’s intention to add by Feb 25 the quotes for these two cryptocurrencies to its platform, that has been perceived by market participants as a kind of “promise”.

Since February 17, the total cryptocurrency market capitalization has grown by $13 billion, which is an excellent performance for the market, that suffered from depressions and subsequent recessions in recent months. If cryptocurrencies manage to maintain their growth, this will create an additional buy impulse. The largest BTC wallets do not show any significant activity, so experts suggest different triggers: from technical (cycles, undervalued assets) to geopolitical (US and Chinese trade deal) and psychological (FOMO and the feeling that the worst is over).

BTCUSD H1 Chart

In fact, it may take some time before experts will find the true drivers (if they are existing at all!), however, it is the unknown growth impulses that most strongly encourage investors to “open wallets”, because in this case, the fear of missing their opportunity increases many times. When market dynamics are clear and predictable, this rarely causes significant fluctuations. The feeling of easy money is not yet completely forgotten by the market.

Nevertheless, it is worthwhile to maintain caution, since the new phase of sustainable growth may still be far away. Yes, everyone is waiting for the regulators’ decisions. Rumors about “approval soon” of the new investment instruments often get into the information field, but for now, these are just “leaks”.

The ETF launch can be quite overvalued since no one knows for sure how steady the demand from institutional investors will be. After all, a little over a year ago we have already seen that the futures launch did not help Bitcoin in any way. Perhaps even the opposite.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US