The crypto markets are surging on Monday with Bitcoin price rising to 8,939 USD in fresh 2019 high. The cryptocurrency is trading with a daily increase of 9% to 8,716 USD at 06:00 GMT.
Monday morning is bringing renewed jubilation to crypto traders and investors as markets surge once again. Bitcoin is in the driving seat with a massive spike sending it to 12-month highs and total market capitalization has also reached a new 2019 and ten-month peak. After fluctuating around the 7,950 USD level for most of the last week, Bitcoin took off again a few hours ago. A dump down to 7,500 USD on Thursday did not last long as the king of crypto rapidly recovered back to resistance at 8,000 USD. From there it powered up to just above 8,900 USD in a 12% pump. Currently trading at just above 8,700 USD and Bitcoin is on a roll right now and analysts are predicting a move to the mid 9,000 USD area.
While the coin is vulnerable to the downside correction on approach to critical 9,000 USD, a sustainable move higher will unleash a vast bullish potential.
The strong upside movement of the Bitcoin price follows its 100% year-to-date gain. As of May 27, bitcoin is up 136% year-to-date with the “real 10” volume of BTC hovering at 1.6 billion USD. The “real 10” volume, which calculates the real daily spot volume of bitcoin by evaluating the volume on exchanges known to have verifiable volume by Bitwise Asset Management, is up nearly seven-fold since March, indicating a clear increase in interest in the asset class.
Moreover, the volume on regulated platforms like CME is surging, indicating a significant increase in institutional interest, while the volume on exchanges and Google Trends popularity for the keyword “Bitcoin” is rising, signaling the rebound of interest from retail investors.
Crypto markets recap
Ethereum enjoyed the run adding 7% itself to reach 270 USD, before dropping back slightly and currently trading at 267.49 USD. The price even tested waters above 272.00 USD barrier during early Asian hours but failed to keep the ground. Daily Ethereum volume is back over 10 billion USD, which could send the second largest crypto asset in the world up to 300 USD in no time.
Bitcoin Cash and EOS are also going strong with a gain of about 9% each to reach 433 USD and 6.94, USD respectively. XRP, Stellar and Cardano have made around 7% jump each.
The best performing cryptocurrency today is Litecoin, which added almost 12% to 113.50 USD. The cryptocurrency has a trading volume during the last 24 hours of 6.5 billion USD, against a market capitalization of 7 billion USD.
Bitcoin SV registered also a strong jump of 23% to 113.81 USD.
The total capitalization of all digital assets in circulation jumped by a whopping 25 billion USD, or 10%, to 269.433 billion USD, while an average daily trading volume hit 90 billion USD by the time of writing.
Crypto market outlook
Behind the factors for growth is likely the block reward halving of Bitcoin that is expected to occur in May 2020. Every four years, the Bitcoin blockchain network experiences a halving of block rewards which declines the rate in which new BTC is produced by miners.
Miners receive less BTC for their work of securing the blockchain and processing transactions and that leads to a drop in the supply of the asset in the global market.
An impactful fundamental factor like the block reward halving is likely behind other factors such as the rise institutional and retail interest because of the sheer momentum of the crypto market in recent weeks.
Earlier this month, when the bitcoin price was hovering at around 7,000 USD, the analysts stated that technical indicators suggest the asset is overbought. But, they emphasized that due to the momentum of BTC in late 2017, despite the overbought signals, the price went on to achieve a new all-time high at 20,000 USD from 13,700 USD.
Last time BTC was this overbought (RSI) on a daily chart was December 6, 2017, with price at 13,700 USD. Back then, a parabolic move ensued.
As the bitcoin price achieved a new all-time high off of a 100 percent year-to-date gain, investors have started to reaffirm their long-term forecasts on the asset’s trend. According to some analysts, the Bitcoin to 28,000 USD is still in play, anticipating a surge in the price above its record high.