There is some good news for the crypto fans around the globe. Cryptocurrencies have not been having such a good year. After scaling great heights in December 2017, cryptocurrencies including bitcoin suffered major setbacks this year.
However, reports have come in that the valuation of the cryptocurrency market has reached $ 346 billion and it is well on its way to cross the $ 400 billion market soon.
Altcoin making gains
Two significant corrections in the cryptocurrency market happened in the cryptocurrency market in January and February. The result of these corrections was that the valuation of the cryptocurrency market fell from $ 816 billion to $ 240 billion. It was, thus, definitely a period of extreme volatility and uncertainty in the cryptocurrency market. In such cases, investors tend to put their faith in an asset or cryptocurrency that has the most liquidity and stability. And, they chose bitcoin. Naturally, other cryptocurrencies suffered a setback.
However, in recent times, many cryptocurrencies have begun to follow a different trajectory from bitcoin. These virtual currencies have started to make strong gains, and the crypto market had begun to demonstrate independent price movements.
Bitcoin reaches $ 8250
Bitcoin has gained by 3 percent in value over the last day and has shot up to $ 8250 from around $ 8000. Bitcoin’s value had slipped from $ 7900 to $ 7810 on the 18th of April. However, significant trading volumes at major cryptocurrency exchanges ensured that bitcoin’s price shot up within a short span of time.
Saxo Bank has noted that major banks like Barclays are planning to set up cryptocurrency trading desks in the future. Thus, the sudden demand for institutional investors and retail traders for bitcoin cannot be dismissed easily.
Tron and ICON
It has been noted that altcoins like Tron and ICON have performed well against both bitcoin and Ethereum. That crypto investors have become more confident in the market and that they are willing to take more risks have become evident due to the fact that they are showing more interest in minor cryptocurrencies.
Saxo Bank, which is a Danish investment bank that deals with online trading and investment, has released a report that said,
“If there is a significant pullback in the equity markets, there will be an inflow of money into uncorrelated assets, or assets that lie outside the reach of the traditional financial system in which cryptocurrencies are a potential alternative. The inflow of institutional capital to the cryptocurrency market due to the increase in regulation and investor protection could lead cryptocurrencies to a positive quarter.”