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Is the Dip Over? Prices Rise Across the Crypto Space - Crypto-News.net
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In mid-August Bitcoin fell to $5,900, which was the second time the flagship cryptocurrency had fallen below $6,000 since March. Altcoins also hit a new low at this time, most of which have been declining against both Bitcoin and in fiat value since January. Although other aspects of the crypto space have seen remarkable progress during 2018, these price drops are more evidence that price volatility is the norm, regardless of other developments. Now, prices appear to be recovering, leaving many to wonder if the months-long correction may finally be at an end.

Bitcoin broke $7,000 on August 30th, and has been increasing steadily for the past four days. Notably, however, is the fact that altcoin prices have remained relatively stable for over two weeks, which is the longest sideways price movement of the year. This fact is a good indication that prices have hit a floor, and that investors are beginning to buy up coins at a discount.

Bitcoin One Month Chart
Bitcoin Prices Have Increased Since Mid-August. Chart via Coinmarketcap.com

A notable change in the current market is the price of alts relative to Bitcoin. Until recently, movement between the two was usually inverse, with alts declining when Bitcoin rose, and vice-versa. Now, the two tend to rise and fall together. This is a clear indication that more fiat is moving into the alt space, and that buyers are beginning to hold altcoins rather than trade them when prices change.

There should be little doubt that the crypto market is showing signs of maturity. Far more investors are taking interest in specific altcoins, as opposed to crypto in general. Also, more than ever platforms have active social media groups that engage in promotion and marketing. Although it is still far to early to determine which cryptos will succeed long-term, it is likely that these supporters are playing a role in moving their chosen platforms up in price.

If, in fact, the months-long price correction is over, the increase in value will likely draw significantly more attention from institutional investors and professional financial firms. These players are known to have a strong interest in crypto, and many are closely monitoring the market for the right entry point. Their involvement is expected to drive fiat prices much higher, and could fundamentally alter public involvement in the crypto space.

Activity over the next few weeks will likely determine the long-term valuation of the crypto market. If prices continue on an upward trend, it could bring back many of the investors that have liquidated to fiat over the past several months. It may also convince sideline investors that now is the time to buy. There is little debate that once the recovery begins in earnest, prices will move up rapidly. Thus, those wishing to acquire cryptocurrencies are wise to pay close attention to price movements, and should be prepared to see significant fluctuation before valuations stabilize.

 

Featured Image via BigStock.

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