Bitcoin has eclipsed the $8,500 mark for the first time in almost a month. Meanwhile, ETH has appreciated almost 60% from its low point at the beginning of April and Altcoins have followed suit.
In our previous post, when Bitcoin was at $8,000, we explored the idea of looking at the extremely low network activity as a leading indicator and this correctly predicted the subsequent dip to the $6,600 level. It seems that the trend has reversed recently as network activity has picked up, which could be a sign of recovery:
(Bitcoin Addresses Used over the past 60 days – Source: blockchain.info)
An upcoming catalyst could be the Consensus 2018 Blockchain Summit, which is the biggest gathering of crypto enthusiasts and which spurred the market on last year. The summit will occur from May 14-16, so we might see a further boost from this.
So what’s the best investment going forward? Altcoins have certainly been outperforming lately, as many have been recouping prior losses at a high clip, but are still in the red for the year overall. As you can see, Bitcoin dominance has been steadily falling in the past month. Meanwhile, the market share of the ‘Others’ category (smaller cap altcoins in the gray line) has increased almost 33%.
Of course, investors should do extensive research before giving into the FOMO mindset. The current rally may turn around at the drop of a hat, but there are definitely some fundamental reasons to be bullish at this time.