What Brought Life Into Crypro Market?

The cryptocurrency market has noticeably livened up at the end of April. Over the past week alone, Bitcoin has added about 20%, recovering from $ 6,886 to $ 8,200. Its current market capitalization is $ 149 billion, or 64% of the entire cryptocurrency market.

It is worth noting that sentiment among bitcoin traders has clearly improved in anticipation of the upcoming halving event. This is also confirmed by the Crypto Fear and Greed Index, which is holding at 28 compared to the beginning of the month when the index consolidated around 10. To recall, the calculation of the Crypto Fear and Greed index Index is based on various factors, including market volatility, trading volumes, and moods on social networks. A state of extreme fear may indicate that the price is getting ready to update its lows. The current values indicate the opposite - the high probability of further recovery dynamic.

But are there any solid drivers for this? Yes, first of all, the already mentioned upcoming halving, which is going to take place in 12 days. Bitcoin is designed that way that only 21 million coins can be mined. The reduction in supply is aimed at preventing inflation. Unlike central banks, which can simply print more cash, there is a limited amount of bitcoins, which makes it more similar to gold than to the national currency. The halving occurs every 210 thousand blocks. As a result, every time the reward is cut by 50% exponentially. Thanks to halving, a total of 21 million bitcoins can only be mined by 2140.

Expectations that Bitcoin will continue to grow after the halving is based not only on the assumptions of crypto enthusiasts but is also based on time-tested experience. There have been 2 Bitcoin halving events already, in 2012 and in 2016. And soon after the halving, the price of the most popular cryptocurrency soared, updating new highs.

The increased interest in Bitcoin may be associated with another event, the phenomenon recently observed in the oil market. On Monday, April 20, US WTI May futures went negative one day before expiration, closing at - $37.63 per barrel for the first time since their inception. After the expiration of oil, the buyers must physically take delivery. Due to the recent crash in demand, oil storage facilities are full. That's why traders were ready to get rid of their oil and even pay someone to take it. With cryptocurrency, there are no such problems. It can even be stored for free - using paper wallets or cryptocurrency exchanges.

Market participants believe that the current BTC recovery may well be the beginning of a new bullish rally. We recommend you to be alert for this excellent trading opportunity, especially since the next target for the BTC/USD buyers is sitting at $10K mark.