Well after a sluggish start to the week, crypto markets were resurgent again and produced a small rally with the overall market cap rising by USD 6 billion. While Bitcoin could break the shackles to cross USD 4000, XRP and Bitcoin Cash just could draw a modest growth of below 2%
Sentiments drive the rally, Fundamentals unchanged
While nothing much having changed fundamentally, most coins seem to have sprung off the ground after some sell-off over the weekend and at the start of the week. EOS and Litecoin were the culprits last week that bought the market down and now after remaining in an oversold territory have sprung back to revival. Technically now Litecoin is back above the USD 50 mark which has added positivity to the sentiment.
With EOS and Litecoin both rising over 10 % the sentiment in the market has turned positive. Bitcoin too rallied from USD 3700 to USD 3900 and is hovering around USD 3880. While the sentiment would had been further positive if the Top coin would have breached USD 4000 levels, but it ran out of steam indicating that this really is going to be short-lived.
Binance Coin(BNB) that was the hero whole of last week, too saw modest gains of 3.90 % cementing its 8th position on the charts while keeping its eye on Litecoin’s 7th position.
Ethereum jump of around 6 % could be associated to the Swiss exchange ETP launch– where Swiss crypto startup Anum AG and the nation’s largest stock exchange, SIX, have announced the launch of an Ethereum exchange-traded product (ETP) according to the latter’s website. The news has come quietly quickly after the exchange first listed its Bitcoin exchange-traded product. But this spike still looks more sentimental here as well.
With all top 20 coins in green the street clearly looks happy for now. Apart from Bitcoin SV, XRP and IOTA which have more of flatish gains, the surge has got in all joys to traders and investors. The best performer between number 11-20 is Maker which currently sits at 16th position and has a gain of over 7%.
While all fingers are crossed for this rally to continue, things look really difficult until Bitcoin breaks through the USD 4000 barrier. Unless that is achieved, markets could recede back.
Will this rally led by EOS and Litecoin sustain or fizzle out? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.