Cryptomarket in Recovery, Led by Stellar Lumens

It’s a 2^nd rising from the dead for the cryptocurrencies, with last week’s Wednesday sell-off still fresh in the minds of the investor, though looking at the moves through the early part of today, one could be mistaken for thinking that its risk on and investors have managed to spend the weekend recovering from last week’s volatility, with new found optimism going into the week.

It’s certainly been a rollercoaster of a January, with the cryptomarkets having entered the New Year with high hopes of a continued rally from December’s gains that were impressive.

Perhaps the writing had been on the wall of a possible crash on news of a regulator looking to impose itself on the market, with the cryptomarkets having discussed the likely negative impact of such an event through the last quarter of 2017.

For now, the markets are looking ahead however and hoping for a better week than the last two that saw Bitcoin fall to 2018 low $9,222.00, with its market cap falling to sub-$200bn as investors ran for the hills.

The order appears to have been restored and, while the start of the day had seen a sea of red across the cryptocurrency board, things have improved through the morning.

At the time of writing, Bitcoin is up 2.78% to 11,880.55, with the markets seemingly ignoring the futures market, with the Cboe February contract up $350 to $11,750, recovering from an intra-day low $11,220.

If there were any lessons from last week, it would be the fact that investors should take less guidance from the Bitcoin futures market, with Bitcoin’s weekend high $13,052.12 likely to have been supported by the fact that the futures markets were closed through the weekend.

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For the rest of the day, the market resilience to the negative news this morning will likely continue to support Bitcoin and the gang, with news of the North Korean government’s hacking into a South Korean exchange, stealing millions of Dollars to support its arms programs amongst other things, have caused little damage.

Bitcoin’s market cap has moved back through to $200bn levels, having struggled to recover in the wake of the last two weeks of volatility, with investors likely to continue to flood back in, assuming there are no further market shocks in the early part of the week.

Bitcoin’s recovery will likely be the tonic for the broader market. Stellar Lumens has taken the charge at the start of the week, up 6.84% to 0.4924 at the time of writing, with Ethereum looking to put last week’s woes behind, up 2.77% to $1,076.13.

If the sentiment continues to improve, there are certainly some gains to be had across the major cryptocurrencies, as they look to make a move towards their weekend highs, which are well below the all-time highs seen in late December and early January, before the double-dip.

While it’s looking bullish, some profit taking will be likely, however, with investor expectations of 100% moves on a day now well and truly managed, for now at least.

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