The crypto markets have continued to climb up higher after seeing two days of large and widespread gains across nearly all major cryptocurrencies. Today’s price climb has actually led many investors and experts to believe that the marketplaces have already developed a long-lasting bottom.
In spite of there being a bullish sentiment that is currently spreading out through a lot of cryptocurrency communities, analysts are now pointing to the importance of transaction volumes as a sign of where the markets are heading next.
Bitcoin and XRP See Sustained Rise in Transaction Volume
Although there may not be an essential factor behind the current crypto market rise, one aspect that may be contributing is an increasing amount of transaction volume that may have an effect on different cryptocurrencies prices.
Naeem Aslam, the chief market expert at Think Markets U.K., just recently told MarketWatch that he thinks that Bitcoin will see increased basic strength in the coming months, which might help add to positive price action.
“The cryptocurrency king is on track to secure its first positive month since July 2018… With the wind of change blowing, the fundamentals are likely to improve in the coming months for the cryptocurrency space. The hopes are pinned on the improvement of the transaction volume for on-chain transactions. This will attract growth because of a larger number of industries becoming part of this infrastructure,” he said.
Mati Greenspan, the senior market expert at eToro, shared a similar belief to Aslam, and also kept in mind that Bitcoin’s current price climb happened at the exact same time its deal volume began to increase.
“We can see this period of low transaction rate in the purple rectangle below… The green line is $BTC,” Greenspan noted while referencing a chart that shows the volatility BTC saw during a period of low transaction volume.
Greenspan likewise kept in mind that XRP has seen an increase of transactions in late-January after XRP’s transactions dropped off a cliff on December 11th, which is about the time that XRP fell back towards its 2018 lows in the mid-$0.20 region.
“Transactions in XRP went quiet from December 11th but came back with a vengeance on January 26th,” he said.
Crypto Markets May Not Be Out of the Woods Yet
Although the current market surge that has sent lots of cryptocurrencies up 10% or more is definitely positive for investors and traders alike, Greenspan cautions that a tight connection between significant cryptos and Bitcoin could signal that bearishness is not yet over.
“Despite recent optimism, crypto correlations remain strong… Major coins still bearing a positive correlation to $BTC of about 0.8, which is very high… Yet another sign the [bear] market might not be over just yet,” he warned.
At the time of writing virtually all major cryptocurrencies are trading up, with Ethereum, XRP, EOS, trading up 1.2%, 3.2%, and 5.1%, respectively.
The post Crypto Markets Continue Climbing as Bitcoin and XRP Transaction Volumes Surge appeared first on NewsBTC.