The cryptocurrency market sentiment has recently seemed to begin to experience a bullish shift according to various industry observers. This notion is now receiving even more support from a fresh report suggesting the bear market is indeed waning.
Is the cryptocurrency market exiting its bearish phase?
Specifically, the digital assets fund Adamant Capital has recently published a report detailing how Bitcoin is currently experiencing “heavy accumulation” according to a blockchain analysis undertaken by Adamant Capital.
What’s more, the report also notes that the cryptocurrency market is currently exhibiting strong parallels to the 2014 – 2015 bear market. This, in turn, gave way to a bull run, which suggests that the cryptocurrency market may be ramping up towards significant future price increases.
In fact, Adamant Capital notes that the firm prides itself on “having published [its] 2012 and 2015 Bitcoin reports during what [they] perceived as periods of significant undervaluation.” As such, it suggests that Bitcoin may be similarly undervalued.
The report goes on to predict that Bitcoin’s accumulation phase could see the cryptocurrency trade in a price corridor between $3,000 and $6,500 before a new bull market emerges and drives further price increases.
The report goes on:
”During the accumulation phase, the market will trade in a range: the weak hands, who are trying to get out of the market, take profit during rallies and thus create the resistance, and the strong hands, looking to accumulate, buy at the bottom of the range which eventually creates a floor in the piece.”
Bitcoin will reach mass adoption within the coming five years
In addition to this, the report also details how most of the retail traders have supposedly left the current market. As a result, so-called “agnostic” traders and long-term investors have grown prevalent, which could explain the low levels of Bitcoin volatility seen lately.
As a matter of fact, the report notes that Bitcoin’s 60-day volatility recently slumped below 5%. This is particularly notable seeing as this barrier has not been crossed since late 2016.
Furthermore, the report also suggests that millennials may well prove to be a major driver in future cryptocurrency market growth. Specifically, it states that a whopping 93% of millennials distrust banks, providing ample opportunity for cryptocurrency adoption. What’s more, this is also supported by the fact that a large portion of Bitcoin investors are millennials.
Finally, the report also posits that cryptocurrencies may become an important financial tool for managing risk, and act as a reserve asset and portfolio hedging solution. Ultimately, it also suggests that Bitcoin will see mass-adoption within the coming five years.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.