After the 2017 surge, a persistent bearish market followed. Since the turn of 2018, the crypto market has been sliding with no end seeming to come in sight. The crypto winter extended into early 2019 eliminating some operators who fell victim to increasing loss margins.
Analysts believe that the looming regulations and challenges may have tamed the prices to slump into a prolonged crypto winter. However, all that seems to be in the distant past as bitcoin continues its rampage even flirting with the $7,500 level at some point on Sunday.
The biggest cryptocurrency rose to its highest level since August. A rebound in the general digital assets market continues with bitcoin leading the way. The markets are recovering from a slump in late April after a New York attorney general launched an investigation of an integral part of the market.
This nascent market keeps twisting and turning proving experts, commentators, analysts, and naysayers alike wrong with every move. Bitcoin surged as much as 6.9% to $7,445 before receding slightly and settling at around $7,341.37 as of 7:45 a.m. Hong Kong. Currently, the crypto is hovering around $7,450, perhaps taking a breather before running away into the $8,000 levels.
The current Bull Run started on April 1, 2019. In the early morning hours of April 2, Bitcoin recorded its largest positive surge in price for over four months. It climbed to a 2019 all-time high of $5100 registered on BitMex. That was the turning point that has seen bitcoin demolish one resistance after the other and positive sentiments have returned in the market.
Possible Gain Catalysts
Currently, all 5 members of the Bloomberg Galaxy Crypto Index are green registering at least 10% gains since May 10, based on Bitfinex and Bitstamp pricing. Since the December 14, 2018 trough, the price of Bitcoin has more than doubled. Now it is surging for a sixth straight day on Bitstamp.
While intensifying trade tensions dominated the global stocks markets in the past week, investors turned to havens for their portfolios. The shift and realignment of portfolios seem to have set Bitcoin on a wild ride after it came tumbling down from its December 2017 peaks of over $19,000.
The digital assets plunged late in April when Letitia James, New York Attorney General, claimed that there was an $850 million cover up by the companies behind Bitfinex and Tether. In the week to April 26, the Bloomberg Galaxy Crypto gauge lost 11% registering its largest one-week plunge in 2019.
For now, most investors are on a wait-and-see mode before diving into the volatile crypto market. WhetherBitcoin and the general crypto market continues to surge or not, only time will tell.