Crypto Market Analysis: Cryptocurrency Forecast For The Week
The Cryptocurrency market witnessed an unsteady fluctuation the past week with Bitcoin hitting a weekly low below $45,000 the lowest weekly drop since March 2020 in a supposed battle between the bears and bulls. We saw a bounce from there following several bullish news like the purchase of more Bitcoins by Microstrategy and other institutional investors which is an indication that market confidence is continuously growing in this space.
As of today, Bitcoin is currently trading above $50k which is a sharp increase from its last 24 hour low. It’s worthy to note that this sharp increase was a result of the $1.9 trillion dollar stimulus package recently signed by President Biden and accented by the US senate.
Over the years, news from the US always have a massive impact on cryptocurrencies so it’s not surprising the market move in a positive direction following the announcement of the approval of the stimulus package by the US Senate, there is no doubt that a large percentage of these funds will find it’s way into the Cryptocurrency market as the US is the world’s No 1 Cryptocurrency trader in global rankings.
Historically, the month of March has been somewhat bearish for Cryptocurrencies over the years except for 2013 and 2019 when the jinx of March dip was slightly broken. The question is, are we going to see another March dip?
We consider several factors before giving an answer to this important question. It is safe to say that it is highly unlikely to witness such a significant dip and the reasons are not far fetched, in the last one month, we have seen several institutional investors and several wealthy individuals invest in Bitcoin and other Cryptocurrencies and this is obviously very positive and bullish news in the long term, It’s tempting to say that the great dip of 2018/2019 may not come again given the huge level of market confidence Cryptocurrency enjoys which is evident in the number of institutional investors and wealthy individuals venturing into Cryptocurrencies.
Whatever happens to Bitcoin affects the rest of the market and for now and the foreseeable future these digital assets will only continue to grow with minor dips of about 20% to 30% which is a healthy correction for a prolonged growth of this asset class.
Some may ask, what about Altcoins?… When will they pump? …. Looking at the market movement from late last year, a lot of the coins/tokens have really done well in terms of price appreciation and we believe this will continue even for those yet to make a significant movement, We have witnessed the influx of new coins/tokens with unique use cases into the market. These coins have really done well significantly for themselves since their entrance into the market.
It’s always recommended to do your own research (DYOR) for any digital asset you wish to buy, however, we remain optimistic and bullish that this week will be bullish for bitcoin and several altcoins following the passage of the US stimulus bill by the US Senate, that alone is a piece of major news set to push the Cryptocurrency market to new heights in the coming days and weeks.