After a rather bumpy start to 2018, the cryptocurrency market is finally making a comeback, increasing by over $100 billion in value ever since the beginning of the month. One of the reasons for this recovery is the increase in trade volumes, which has been pretty stagnant ever since the crypto market peaked in January of this year.
According to data from TurtleBC, over 92% of the orders on the crypto market are buy orders, shadowing even the percentage of buy orders of 82% during the bull run back in January. This data was a composite of all the buy orders in the following markets: BTC-ETH, BTC-XRP, BTC-ETC, BTC-XMR, BTC-DASH, etc.
This huge proportion of buy orders is a good indication that the market might just about to be gearing up for another bull run. This is because buy markets percentage is a good tool to help find the start and end of the bull market – when the percentage is less than 10%, this is a good sign that buy signals may be appearing soon.
Buy Percentage Surge Reflected By Crypto Prices
Similar to the monumental increase in buy percentages, the prices of various cryptocurrencies like Bitcoin, Ethereum and Ripple have been steadily increasing over the past month. Bitcoin has increased by almost 50% in the month of April, while Ethereum has almost doubled ever since hitting a low of $358 in the beginning of the month.
The recent resurgence of the crypto market is bringing back bullish sentiments amongst market analysts. Fundstrat co-founder and head of research Thomas Lee stated not long ago that his End of Year (EOY) price prediction for Bitcoin is $25,000 – a 184% increase from Bitcoin’s current price tag of $8,800.
“We still feel pretty confident that bitcoin is a great risk-reward and we think it could reach $25,000 by the end of the year … It’s overdue. Bitcoin was incredibly oversold.”
Tom Lee explained that the reason for this increase is because of the end of the tax season, which meant that people are getting their tax returns and are able to invest them in cryptocurrencies.
However, on the other side of the debate, Kenneth Rogoff, an economist at Harvard, remains bearish about the future of Bitcoin, as he believes that “if you take away the possibility of money laundering and tax evasion, its actual uses as a transaction vehicle are very small.”
“I think Bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now … I would see $100 as being a lot more likely than $100,000 ten years from now”
