Bitcoin has been on an upward trend since hitting bottom on Sunday, April 1st, rising from below $6,600 to nearly $7,500 on April 3. If this trend continues, we’ll be back to the $8,000 range seen on March 28th before the market dipped. Most of the altcoin market is also in the green today, with the biggest gains in Verge, surging over 50%, as well as Steem, WAX and Lisk, all up in the 20-30% range according to CoinMarketCap.
Comparing Bitcoin price moving up steadily since hitting a low on April 1st, it is noteworthy that CME futures settle on April 4, 2018. Also of note is that Bitcoin’s price is in the high range of each contract, at just under $7,500. We’re not suggesting market manipulation here, only that there is a stark correlation in the numbers.
Regardless of the cause, if you bought the recent dip on most digital currencies, then you should be doing well right now. Those who panic-sold over the last several days have no doubt taken losses, and those who HODL’d are likely on their way back to March numbers. We’re not financial advisors, and these are only opinion articles, but the lesson here appears to be not to panic.
Part of the upsurge in the altcoin market may also be attributed to overall positive sentiment about regulations. Huobi opened their exchange for trade in South Korea, proving once again that the rumors about a ban were fake news.
In the meantime, the fact that Bitcoin and the entire crypto market are up today may be an indicator that the stock market is also about to take a turn for the better. According to DoubleLine Capital CEO, Jeffrey Gundlach, historically a rise in Bitcoin prices is often followed by a rise in the S&P. This would be good news, given that Amazon is now down 8%, arguably due to some tweets from the President, with most stocks following suit. Indeed, the S&P 500 closed below its 200-day moving average for the first time since June of 2016.
On the positive side, some of the benchmarks are in the green. UnitedHealth Group Inc. (UNH) is up 3.40%, the only blue-chip among 30 that ended above its 50-day moving average. We reported on UnitedHealth Group on April 2nd, along with several other healthcare companies that are exploring blockchain technology. It’s possible that this partnership influenced the price of UNH. It’s also possible that the expected repeal of the ACA still has not happened, making it seem unlikely to happen given that it has been nearly a year and a half since the election. On the contrary, we’re seeing an expansion of Medicaid, which may have had a positive impact on UNH prices.
While the stock market has its ups and downs, hese next few days will be critical in analyzing the ups and downs of Bitcoin and the cryptocurrency market, and how the Bitcoin futures market may influence those numbers.