The cryptocurrency ecosystem has been waiting to see the end of the crypto winters, aka the end of the bear trend and with the recent bullish moments observed by all most all big and emerging cryptocurrencies, it seems the wish has finally been granted.
The analytics arm of cryptocurrency exchange Binance, Binance Research has claimed in its latest research report published on April 11, that Bitcoin (BTC) prices and altcoin prices could have already hit their lowest point.
The new analysis from its research bulletins, the firm studied various current phenomena and trends within cryptocurrency markets, including the correlation between Bitcoin and altcoin prices data from 2014-2019. The data confirms that for past 90-day has been the longest period of high correlation in market history.
Looking into the historical behavior of the tokens, such periods often leas to trend reversals. The 90 days to mid-March incorporated Bitcoin’s drop from $6,500 to around $3,100, leading Binance to suggest that following the end of the record correlation period, the markets could now rebound. The report stated:
“Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.”
The latest research bulletin also shed light over cryptocurrency’s investor makeup, i.e. institutional investors control around 7% of the supply. As per Binance, the percentage is roughly equal to one-thirteenth of the institutional control of the United States stock market.
Just last week, Thomas Lee, senior market analyst and co-founder of Fundstrat Global Advisors brought attention to three-year high readings over his “Bitcoin Misery Index (BMI)”, purportedly implying that no further downside would occur. He wrote on Twitter on Thursday.
“The main takeaway is […] further evidence the bear market for Bitcoin likely ended at $3,000.”
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