Crypto markets have been in a state that investors call a
bear market. The trend set in after the decline of crypto markets late last year.
Bear markets are characterized by long periods of fairly consistent numbers. There’s nothing wrong with bear markets, they’re just not as exciting as periods of rapid growth — called
To be called a bear market or a bull market, the trend has to stick around for a while. As a result, it’s too early to say that crypto has reentered a bull market but numbers have turned bullish.
The rally was first identified in a tweet by a crypto expert Kain Warwick a few days ago.
Who Is Kain Warwickk?
Kain Warwick is the CEO of Blueshyft.
Blueshyft is an Australian company that manages digital payments. The company started out doing things like processing credit card payments for business but has since expanded into crypto. Working with a number of popular crypto exchanges, including Bitcoin Australia, gives Blueshyft an overview of diverse markets and trends.
Yesterday Blueshyft saw the highest single day deposit volume since May 2018, Warwick tweeted.
This is new fiat inflow into crypto, retail buyers are coming back into the market.
What Does He Think About the Increase?
Warwick expanded his ideas in an interview with online news publication Micky.
We work with a lot of exchanges and we’ve seen a pretty steady increase in the volume of deposits over the last two or three months – which in 2016 was a very very strong leading indicator of the rally we saw in late 2016 all the way to the end of 2017, Warwick told Micky.
For me that’s one of the best indicators – you’re seeing organic interest back that people want to put money into crypto.
Warwick also pointed out that more people investing in crypto has a
compounding effect that makes holdings even more profitable. There’s also the fact that more people in the market and a more lucrative market makes the market more appealing. That doesn’t mean that every uptick means a consistently strong market in the near future. It takes time for these trends to set in.
I think we need a solid couple of months of upward price movement to really confirm that trend reversal and then I think we’ll see some excitement come back into the space, said Warwick.