As most of you have probably seen, the crypto market experienced a nice pump over the last 48 hours with Bitcoin breaching the $8000 USD mark. Notably, it was the biggest volume Bitcoin has ever experienced in a 1 hour candle.
The reason for this pump remains unclear but many market commentators have linked it to the nearing of the US tax deadline on April 17th where investors have been selling their cryptocurrency to pay off taxes.
There has also been speculation about the price being pushed up by institutional investors and even George Soros himself who recently authorised his $26 billion USD family fund to invest and trade in cryptocurrencies.
Additionally, on Friday 13th venture capitalist Tim Draper said he predicts Bitcoin to reach $250,000 USD by 2022 with similar bullish calls being echoed by Tom Lee from Fundstrat Global Research who thinks we will see a return to $20,000 within a few months.
There are still many regulatory hurdles facing crypto but with the stock market at all-time highs and with bullish sentiment beginning to permeate the media again, the crypto asset class is undoubtedly looking like an appealing option to investment funds managers.
Crypto investors and traders should be aware however that there still is a good possibility that Bitcoin will fall back below $6000 USD. Currently the total crypto market cap is sitting back above 300 billion USD and whilst we have witnessed a slowing of upward momentum, (volume is usually less on weekends), we are pleased to see a daily close above the long term downward trend.
We don’t think we are out of the woods just yet but we are looking forward to the week ahead and our preparing ourselves accordingly to take advantage of any buying opportunities.