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The price of bitcoin climbed to $ 8,450 after recording a 5% increase over the past year. last 24 hours. The cryptocurrency market is moving towards the $ 350 billion region and has already crossed the $ 334 billion mark.
Is the bull market back?
It is too early to confirm whether the price of bitcoin can continue its upward run in April and potentially up to $ 10,000. Bitcoin is still down 50% from its record high of $ 19,000, and traders expect the price of bitcoin to surpass $ 12,000 before it can reach its all-time high. Therefore, Bitcoin is still in its early stages of recovery.
However, he is optimistic that the price of bitcoin has gone from $ 6,500 to $ 8,400 in a very short time, starting a quick recovery for the first time since mid-March. The valuation of the cryptocurrency market has also hit a monthly high of $ 335 billion and if the market can maintain some momentum throughout the month of April, it's possible that it will reach 400 billions of dollars.
During the last week, many alternative cryptocurrencies (altcoins) like 0x, OmiseGo, STORM and WanChain outperformed Bitcoin. Increasing the momentum of altcoins is an optimistic indicator of the overall stability of the market as investors are willing to take more risks and invest in highly volatile assets with relatively low liquidity instead of bitcoin.
Several analysts recently said that soaring bitcoin prices could be attributable to the end of the US tax season, as analyzed by Wall Street analyst Tom Lee.
"The sales pressure associated with the tax day has decreased at this point, and as people get their tax returns, new capital may enter the marketplace." says Ryan Taylor, CEO of Dash Core, cryptocurrency software company.
In early April, Lee echoed a similar position to Taylor and predicted that the price of bitcoin would rise as soon as the end of the tax season, as investors in the United States might have to $ 25 billion in taxes at the Internal Revenue Service (IRS). Lee told CNBC:
"This is a massive crypto output to the USD and historical estimates make every dollar spent in USD has an impact of $ 20 to $ 25 on the value In addition, we believe that there is selling pressure through the crypto exchanges that are subject to income tax in US jurisdictions.Many stock exchanges have net income in 2017 [of more than] $ 1 billion and keep their working capital in [bitcoin] / [ethereum] and not in USD – therefore, to meet these tax obligations, sell BTC / ETH. "
Pump of South Korea
The financial sector and the cryptocurrency market of South Korea are both heavily influenced by word of mouth. The South Korean market is described by local investors as a copper plate because it heats up very easily and cools quickly. When the cryptocurrency market experienced strong margins in February, public figures went so far as to apologize for their investments in the cryptocurrency space because many investors have lost money.
If regions like South Korea and Japan started to launch another bulls rally for bitcoin and other cryptocurrency, the market could improve significantly in terms of liquidity, adoption and stability.
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