Cryptocurrencies just had an excellent week.
According to Coinbase charts, Bitcoin was up 19%, Ethereum was up 32% and Litecoin was up 12%.
Ripple, which isn’t on Coinbase but is covered by Coindesk was up over 38% according to data supplied by Bloomberg.
I have been bearish on Crypto of late, with a view that Bitcoin would sink below $5,000 based on declining adoption rates.
I would be foolish not to at least reconsider that view after this past week when
- Price moves were strong and consistent and took thinks like Bitcoin back above the 200-day moving average
- As reported in Cointelegraph and other sources, George Soros is allegedly investing in bitcoin, which is worth noting since as recently as Davos, he seemed dismissive of Crypto.
- Mounting concerns about Russia and Syria seemed to help crypto (just like when easing tensions in North Korea seemed to hurt crypto).
- Any tax-related selling should be over.
- There does seem to be a correlation between FANG and Crypto – both did well post the February lows and now FANG has rebounded after Zuckerberg’s testimony.
This is the first time that enough has gone on to wake me out of my bearish slumber.
I still have too many concerns about adoption rate, competing technologies, market manipulation, government interference, etc., to change my view, so I would be cautious about being too bearish here.
I would like to see some follow through, especially since the potential for escalation with Russia seems to have diminished, before changing my view, but I will admit to being much more concerned about my view that crypto had more to fall before we could see a sustained rebound.
This story originally appeared in Forbes. Image courtesy of Shutterstock.