Cryptocurrency market showed a sharp rebound
On May 20, the assumption that the cryptocurrency market is not ready to go into a clear long-term price correction was confirmed. After bitcoin’s price spiked to the $30,000 level on May 19, it surged upward again on May 20, momentarily reaching the $44,500 level. As a result, at the beginning of May 21, the cryptocurrency No.1 was more expensive than $40,000.
If we take the results of the last 24 hours, they look impressive:
- Bitcoin: +37%
- XRP: +39%
- Polkadot: +39%
- Chainlink: +39%
- Litecoin: +50%
- Uniswap: +52%
- Ethereum: +52%
- Bitcoin Cash: +53%
- EOS: +54%
- Stellar: +58%
- Dogecoin: +72%
- Cardano: +83%
- Ethereum Classic: +89%
Thus, those who entered the cryptocurrency market on May 20 and invested in these digital assets saw a daily return on investment averaging more than the returns of the key Wall Street indices over two years. And large investment funds can’t ignore that. For example, Carlyle Group co-founder billionaire David Rubinstein is convinced that:
“Cryptocurrencies are not a one-day story, they are not going anywhere as a phenomenon exactly as gold with its role in the global financial system has not gone anywhere.”
Chainalysis experts come to the conclusion that the market collapse on May 19 was caused by the actions of individual traders who often trade with high leverage, which is very risky. At the same time, large participants of the cryptocurrency market, i.e. mainly legal entities, on the contrary increase the purchase of digital assets. On May 19, digital assets were sold mainly by individuals: if legal entities had come to the market with sales, the volumes of cryptocurrencies would have been significantly higher.
For example, during the sale of digital assets on March 13, 2020, when bitcoin fell to $3,500, 412,000 bitcoins were deposited into cryptocurrency exchanges in one day. This time, a similar amount was accumulated on cryptocurrencies at a noticeably slower pace – in three days.