The daily volume on the main cryptocurrencies has reached the highest level for over a year. Is this the beginning of a change in the trend and the evolution of the market?
Where does this change – for better – the volume come from? Does this mean that the market has already recognized that “cheaper will not be” and you need to buy bitcoins right now, because the train may not leave yet, but it warms up the engines to start? Jameson Lopp, technology director at Casa – a company that deals with security issues for personal keys – notices something else. In his opinion, “the system is improving and growing”:
“Several improvements have been made in the Bitcoin blockchain in the last few years. Updating nodes brings effects. In addition, a new, efficient network of mining excavators appeared. ”
He also points out that “improved algorithms for fee estimation, segregation adoption (SegWit) and grouping of transactions have led to more efficient use of blockchain space and less competition for this rare resource.”
So SegWit and strengthening of technological foundations? It is worth recalling that in 2018 the share of transactions that use SegWit increased from 10 to 40%. In 2018, the general domination of bitcoin on the cryptocurrency market also increased. Why? Lopp suggests that a loyal community was founded around the oldest cryptocurrency:
“The number of used nodes did not drop significantly compared to the price – in my opinion the managers of these nodes are loyal to Bitcoin and use it for economic purposes, which is why their departure is unlikely due to the volatility of the exchange rate.”
Yesterday, we wrote about the forecasts of the company Fundstrat, which is known through the prism of Tom Lee, so far associated with forecasts. Now one of its strategists, Robert Sluymer, predicts that bitcoin (BTC) and altcoin prices may be even cheaper:
“The price structure for most crypto currencies remains weak and seems prone to collapse and falls to lower levels.”
The question is: if the volume is growing, and in the market, even in the environment of “bull” analysts, there are suggestions that it will be worse, is not it a good time to buy bitcoins for a long period? What is your opinion? Do you think that it is safe to buy cryptocurrencies in order to take profits in a few months?