Newly Published Report Suggests Crypto Winter Is Coming To An End

During the crypto winter, positive news has been very scarce and so when some good news surfaces, most crypto enthusiasts will flood towards it and start coming up with wild speculations of the next bull run, partnership or price prediction for the industry.

All that being said, we actually do have some legitimate evidence that the crypto winter could be coming to an end. As Bitcoin shows some unexpected resilience and price is staying relatively stable in an industry that seemingly wants to kill it off, there are many factors that many Bitcoin fanatics like to keep a keen eye on.

One of these factors has just made a big impact.

The February SFOX Crypto Volatility Report was released today and in the report, analysts try to gauge the health of the crypto markets by looking at three metrics, market sentiment, price momentum and the continuous advancement of the sector. The report came out yesterday and ultimately concluded a bullish outlook in general for the cryptocurrency sector.

Firstly highlighting that a significant amount of help from high profile individuals supported prices in general saying:

“Some of the ‘hype’ that we mentioned was absent from the month of January appeared to resurface in February amidst pro-crypto statements from tech personalities (e.g., Elon Musk and Jack Dorsey) and crypto pundits ‘calling the bottom’ of Crypto Winter.”

Celebrity endorsements aren’t new. No one knows what the person has on their agenda and if one thing that investors have learnt, it’s that hype in the crypto space has a considerable bearing on price movements but they are almost always temporary. Especially when it comes to the thin and illiquid environment currently faced by some of the bigger cryptocurrencies.

Celebs that say kind words on different projects are beneficial for a price change but they don’t typically do anything else. If you want to base your investment on something that makes sure it’s something solid and not a throwaway comment from a high profile celeb.

BTC Increase

In the same report, there is a lot of news including transactions on the BTC network which surged to their highest level in over a year. “there were also more fundamental reasons to have a positive outlook on the market: transactions on the Bitcoin network were at the highest level since January 2018.”

If you’re not excited by the idea of a Bitcoin ETF then SFOX would class you as in the minority saying, “Even while some factions within the crypto sector question the significance and utility of a Bitcoin ETF, the market still seems to be fairly responsive to news about its potential: in the two days surrounding this news, the price of BTC climbed over 7%.”