Finally. The past couple of days have seen a pretty depressing mist cover the markets. After a fantastic April, bundled with surge after surge in currency value, we have finally seen a significant correction period take place, which has bought some values tumbling down.
The correction period started on Wednesday and seemed to continue into Thursday, this morning however we have a much more optimistic outlook ahead of us going into the weekend.
Let’s crunch some numbers:
At the time of writing, Bitcoin
is valued at $9,253.56 and is up 4.30%. Ethereum
is valued at $657.28 and is up 4.32%. Ripple
is valued at $0.842 and is up 3.86%.
Further down the markets, Stellar is valued at $0.418 and is up a huge 12.18%, even Verge is relishing this, XVG is currently valued at $0.073, up 12.70%.
Now of course, we are going to look to Bitcoin when we try to work out why the markets have recovered so soon. This is important because we need to figure out if indeed this is the end of the correction period or if it’s just a short blip. Importantly, we need to understand what might happen next, are we going to sink or swim? Moreover, are we going to the moon?
According to reports, yesterday more than 17,000 Bitcoins were dumped by the Mt. Gox trustee, which explains why the value of Bitcoin may have dropped, pulling the rest of the market with it (as it does). This isn’t the first time a dump from Mt. Gox has occurred prior to a market decline, the problem is, is that the sell offs are taking place on cryptocurrency exchanges, rather than over-the-counter markets (OTCs) which are designed to facilitate huge coin exchanges without influencing the exchange markets. According to CCN:
“In spite of the criticism from the cryptocurrency community and the request from investors to utilize the OTC market to sell large batches of bitcoin rather than cryptocurrency exchanges, the Mt. Gox trustee has continued to rely on major exchanges to dispose their funds. Consequently, subsequent to each sale, the price of bitcoin has fallen by large margins.”
Okay, so what we may have seen here then is a market decline in reaction to another mass Mt. Gox coin dump. Through this taking place on a live exchange rather than through an OTC, the value of Bitcoin dropped significantly, leading the decline for the rest of the market. Therefore, the positive trend we are seeing now, is most probably a recovery from that, which means hopefully, we have finally exited the correction period, or, more likely, the depression period as a result of this coin dump.
Today, let’s watch the markets closely, perhaps this positive trend will see a spike and maybe the ellusive second bull run could finally take hold. Either way, if things steam on at this rate, we will have a positive weekend for sure.