Cryptocurrencies are poised to finish largely in the red in a week where Bitcoin (BTC) displayed its sought-after trait as “Digital Gold” and moved against the broader market, preserving gains of 138 basis points – bulls supported the benchmark coin at the $5,000 price level and it currently trades just below $5,100. Among the 20 largest cryptocurrencies by market capitalization, 12 fell by more than 5% while 4 fell in excess of 10%.
As BTC trades for its second week above $5,000, crypto investors are beginning to see glimmers of hope that indicate an extended rally may be forming. In Diar’s crypto newsletter this week, the publication noted that trading volumes of institutional crypto products, relative to total crypto trading volume, have increased in every month since the start of 2019! Also this week, CME group noted that daily trading volume of BTC Futures reached an all-time high on April 4th, when more than 64,000 BTC worth of futures contracts were traded. These two data points, paired with the halving of BTC mining rewards approaching in 2020, may combine to support the thesis of an extended rally in BTC!