Potential for Crytocurrency Rally Following Years of Negative Growth
Scroll DownRecently, Bitcoin topped $5,300 before heading a bit higher and then coming down. Most altcoins saw modest gains during around this time as well. Cryptocurrencies have since pulled back, although the market might be poised for a rally. Investors remain cautious as has been the case for over a year now. Plus, a major controversy surrounding Tether continues to weigh on investors' minds. It's difficult to tell where the market is headed, but most people feel a rally will come sooner or later.
Bitcoin managed to rise to $5,300 within the past 96 hours. Ether clawed its way to $160, and other altcoins managed to post modest gains. Unsurprisingly, Bitcoin continues to hold the largest market cap of all cryptocurrencies. Ether holds a slight lead over XRP for the number two spot. A number of obscure altcoins managed to post gains over 10% within the past week, although they've since come back down, too. Total market capitalization for cryptocurrencies remains under $200 billion at the moment.
Most investors wouldn't consider trading off gains and losses newsworthy. Then again, crypto markets seem to be stabilizing in the long run. That's good news as Bitcoin and other coins continue to find a general floor with no obvious ceiling. A solid floor for cryptocurrency valuations makes a potential rally all the more likely. While that rally won't happen overnight, it could occur sooner rather than later with such patterns. Everyone wants the markets to post a sustained rally for obvious reasons.
As previously mentioned, a major controversy continues to hound the market. The New York Attorney General accused Bitfinex of accessing Tether's cash reserves to cover a funding gap. All of Tether's reserve is designed to back the stablecoin's inherent value, so dipping into the reserve is considered a major no-no. Although Bitfinex has denied the allegations, the entire ordeal is a major concern for everyone involved. It remains to be seen what comes of these allegations.
Bitcoin and most altcoins remain down year over year. Fortunately, the bloodshed appears to be slowing, and small rallies are becoming more common. Perhaps 2020 will see cryptocurrencies start to grow once again. A trillion dollar market cap remains a stretch, but cryptocurrencies have been declared dead before.
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