Is crypto market on its path to recover?
After a path of a costly decline throughout all of the cryptocurrency industry, just over the course of this past Monday, the crypto market added $12 billion to its valuation.
During this short term, its valuation grew from $115 billion to $127 billion following the gains achieved by major cryptocurrencies, including Bitcoin, Ripple, Ethereum, Bitcoin Cash, and others. Additionally, the value of some cryptocurrencies gained heights rapidly, experts note. For instance, during just 24 hours Ethereum has experienced an increase of over 7 percent, while Bitcoin and XRP rose by 6 percent and 8 percent, correspondingly.
However, experts warn that the further drop is still possible, especially if BTC would encounter another large drop in value. As determined by the trader and economist Alex Krüger, a short-term bottom could have been already established, however, it’s still too soon to talk about a new accumulation phase. And even though the cryptocurrency market in 2018 is different from how it looked a year ago, due to involvement of major financial institutions, liquidity providers, and regulators, a longer consolidation period is likely inevitable. According to Krüger, even with having a strong possibility for the financial institutions to lead the next investment round for crypto, it would take some time for the majority of crypto investors to regain the trust in the market again. Even though volatility is not new to the crypto industry by any means, both newbies and mature investors alike nonetheless suffer from their potential losses.