After several weeks of selling, cryptocurrencies are finally seeing what could be a significant turnaround. According to a recent article from Forbes.com, Bitcoin crossed back above the $10,000 level as investor sentiment is once again on the rise. Recent encouraging price action may be just what the doctor ordered for the cryptocurrency markets, which had seemingly been searching for a bottom. Recent upside comes as stocks and other markets have been exhibiting increasing volatility, although stocks have put together several impressive winning days in a row following some recent routes that saw the largest recorded drop in the Dow Jones Industrial Average.
Markets have seen tremendous volatility in recent weeks. The crypto markets are not immune from wild swings in investor sentiment and appetite for risk, and many currencies have seen some wild swings in recent action. Investor desire for cryptos has faced some hurdles in recent weeks, as the notion of additional and ongoing regulation took a toll. Investors seem to be coming to grips with the idea of regulation, however, and having a regulated currency market may prove to be a good thing for cryptos in the long run.
The recent rebound in cryptocurrencies even has some analysts suggesting that new highs could be seen, and soon. A recent article by Reuters.com, stated that “Thomas Lee, managing partner at Fundstrat Global Advisors, sees a new record peak for Bitcoin by July, based on the currency’s 22 corrections since 2010.”
That’s quite the climb from current price levels just over $10,000, but if Bitcoin and other cryptos have shown anything this past year, it’s that they are certainly capable of rapid and significant moves higher. There are also numerous factors that could potentially contribute to higher prices. Stock market volatility, geopolitical issues and a weaker dollar to name a few.
Bitcoin: The king of cryptos saw a key rebound this week, and climbed back above the psychologically important $10,000 level. This currency dipped down below the 8k mark earlier in the week, before seeing a strong bounce to over 10k. Long-term investors likely feel that a bottom has been put in, and stepped in willing to buy the dip.
Bitcoin Cash: Bitcoin Cash is up over 10% in early trade Friday as the currency exchanges hands for over $1500. This currency has not seen as much volatility as some others, but has been trending higher as the week progressed. Recent gains can likely be attributed to improving overall investor sentiment.
Ethereum: This crypto has also seen buyers step in this week, although thus far it appears to end the trading week on a bit of a weaker note. The market dipped to less than $800, but has since bounced back to the $936 area.
Ethereum Classic:This crypto saws a dip down to $21 and change before buyers stepped in, taking prices to over $34. The market is taking a breather thus far on Friday, however, seeing a small decline that could potentially be attributed to short-term profit taking.
Litecoin: This crypto has had a very strong showing this week, as news of a possible fork have fueled investor interest. it has been reported that those holding Litecoin would receive 10 new tokens for each coin. The new currency would be known as Litecoin Cash and trade under the ticker symbol LCC.
Ripple: This crypto has also seen a rebound, and has followed many other cryptos higher this week. The currency made a low of less than $0.96, before climbing back to about the $1.14 level.
Although it is not clear just how high prices may climb, cryptos are still garnering significant attention from investors. These currencies have seen some solid buying on the recent dip, and could potentially return to previous highs or beyond. Markets may remain vulnerable to additional regulatory actions, however, and there could be further bumps in the road as they look to become more mainstream.
Many issues may keep interest levels high in the crypto markets. Problems such as sovereign debt, weaker paper currency values, geopolitics and overall market volatility may keep buyers looking for a reliable store of value that may potentially avoid the effects of higher inflation. Positive headlines in the crypto space may fuel additional buying interest, and another rapid run higher could be seen.