A recent article in Bloomberg paints a less optimistic future of the crypto markets than you might typically find this week.
Vildana Hajric reports that the GTI Global Strength Indicator of the Bloomberg Crypto Index, which tracks significant cryptos, has the same trends which led to its previous peak in January 2018. The index (and the price of major cryptocurrencies like Bitcoin and Ethereum) dropped over 65% after that.
Analyst Calls Bullsh** on April Fool’s Day Run
According to analyst Mike McGlone, the current “bull” trend is suspicious at its very best. He says that exchange volumes and transactions aren’t what we should expect in a bull market.
A highly speculative market rallying on declining volume is not healthy. Typically you need good, strong volume and transactions to indicate an enduring trend. Bulls appear to be grasping at straws or what best fits their more emotional less rational views, positions. The emotional enthusiasm the past week appears too extreme.
The Bitcoin price has risen more than $1,000 since April 1st. The April Fool’s Day run, we might call it in historical terms, no one’s overly sure what sparked the rally. Before that, Bitcoin had traded within several tight ranges, all the way down into the high $2,000s at some points, for months. Bulls have seized the opportunity to celebrate on social media, and the price of other major cryptos have experienced corresponding gains, or, in the case of Bitcoin Cash and Litecoin, seized much more substantial percentage gains.
Crypto trading platforms overcharging fees when compared to stock and forex trading platforms, an economist’s research has revealed. | Source: Shutterstock
Bitcoin has been surging in April, charting a new 2019 high after the first quarter of the year. | Source: Shutterstock