Cryptocurrencies have witnessed an incredible rally over the last few weeks. Bullish momentum has boosted the cryptocurrency market cap to $421 billion at the time of writing. The last time the market cap saw this number was at the beginning of March, over six weeks ago. One of the lowest dips of the year so far occurred earlier this month at approximately $244 billion. This means the market has been able to recover over almost $200 billion in market capitalization, a sign that cryptocurrencies are still very much alive and kicking.
Bitcoin recovery has driven most of the market’s gains. Bitcoin started off this month with a trading price of about $6,500 and has been able to climb up above the $9,000 mark, which many analysts believe is an important level that could result in Bitcoin surpassing $10,000 soon.
Bitcoin has broken an important level by passing $9,000.There is no doubt that altcoins have also played a role in propelling the market forward. Bitcoin Cash and Ripple are among some of the coins that have outperformed Bitcoin in the last few days, gaining as much 40% and 80% respectively this past week. It is also worth noting that EOS overtook Litecoin and claimed 5th spot in the list of coin rankings by market capitalization. In fact, EOS is one of today’s top gainers with an 18% price change over the past 24 hours, raising its price to $13.68.
Though altcoins are making gains of their own, they still generally follow Bitcoin’s price trend. As long as Bitcoin continues to grow, altcoins will also most likely increase in value. Dan Moorehead, the CEO and founder of cryptocurrency investment firm Pantera Capital, recently told CNBC that Bitcoin was flashing a rare buy signal, indicating that its price will resume this upward trend in the months ahead.
“Bitcoin has been growing at 165 percent a year for the six years that we have been in business. And something that is growing fast hardly ever gets down below its 200-day moving average. When it does it is a very good time to buy. It did five years ago when we launched our first fund and it just crossed that earlier in April.”
While it is possible that we could be in the middle of a trend reversal, the risks associated with extreme volatility are still present. Nonetheless, the recent market rally has sparked renewed optimism that Bitcoin is back on track to reach $20,000 by the end of this year.
