After a turbulent Start to the year 2018 and approximately $600 billion USD in market capitalisation less since the beginning of the year, it appears as if crypto-currencies, to find finally a stable Foundation.
Bitcoin, the most crypto-currencies gained the majority of market capitalization they lost in the last few months, continuously. Thanks to a short but intense Bullish price movement in Bitcoin within a hour to have $1,000 USD to rise, reached a Bitcoin for the first Time this month back to the $8,000 USD Level.
Bitcoins price increase was also reflected in Altcoins. Ethereum increased by 36% this week and is back over $500 USD. Ripple’s price has recovered from less than 50 cents to around 70 cents, a price increase of 40%. The total market capitalization of crypto-currencies is now at $320 billion USD, around $40 billion more than last week.
Nevertheless, one cannot say with certainty whether these positive price movement and will extend through April. For one, Bitcoin’s price is still less than half of the all-time highs of $19.800 USD, which we have seen. Most traders assume that the atmosphere only by Exceeding the $Bull $ 12,000 Levels back stronger.
However, there is no doubt that Bitcoin, if it is increasing this week to over $ 1,500, is in an early stage of the recovery. If the current dynamics of the market continues, it is possible that the entire crypto market capitalization will reach to the end of the month, if not earlier, of $400 billion USD.
Cops come back thanks to the end of the tax season
Earlier this month, the Wall Street Analyst Tom Lee put forward the hypothesis that the recent crypto – currency “Crash” was due to exchanges and individual investors, which would have paid out in view of the tax season of 2018 to their holdings.
“We also continue to believe that crypto exchanges are based in America, currently, selling pressure,” explains Lee. “Many of the exchanges in 2017, a net income of more than $ 1 billion and keep the working capital in the [Bitcoin] / [Ethereum], not in USD, therefore, you can sell BTC / ETH, in order to satisfy these tax liabilities.”
Thanks to the end of the tax season in the United States, it is therefore not surprising that crypto-currencies will see a return to positive price movements because of the pressure to sell is without a doubt decreased. This opinion is also shared by Ryan Taylor, CEO desKryptowährungs Software company Dash Core.
“The selling pressure is associated with the Steuertag, is now decayed. When people get their tax return, can get new money on the market. “