Good News; New Money Is Entering The Crypto Market
Mexico's bill (introduced in December) to regulate cryptocurrency exchanges has been approved by Congress.
They intend on working with exchanges to ensure traders and investors are registered and compliant. The law will also require cryptocurrency operators to be approved by the Bank of Mexico.
This is another huge step towards regulating this space; we will continue to see this across the cryptosphere throughout 2018.
You can read more here: (https://goo.gl/8s8AdH)
The market has moved mostly sideways for much of the last month while Bitcoin has regained stability and support above $10k.
The last week or so has been a great time to accumulate your favorite ALTs but we're being careful to ensure we're nicely diversified into Bitcoin as well - as we've always stressed.
The reality is this: For a real bull market to commence, new money is going to need to come into the space.
The daily trading volume for the last month has been about 70% less than we saw at the peak of the last run, with only about $18bn per day being traded right now.
When the volume begins to increase again it will be a good sign that the market is really heating up.
You can see the daily trading volume at (https://coinmarketcap.com/charts)
We suspect that we'll really start to see some upside from the ALTs we are accumulating now, in and around April.
What will lead to an increase in daily trading volume?
There are many things to consider but here's some points we think will contribute to more money entering the market.
#1: ICOs
In 2017 ICOs raised about $5.6 bn. So far in the first two months of 2018, over $3bn has already been raised!
A lot of those coins will begin to hit exchanges soon and a lot of trading money that has been tied up in ICOs, will re-enter the market.
#2: Tax season
77% of Americans get a tax refund averaging $2,798. A lot of the new money that entered in December may look to take another shot after tax time.
This, coupled with exchanges reopening to new users, institutional companies coming into the space, and other bullish events we've shared, gives us a lot to look forward to.
There's likely some rocky days ahead for ALTs as BTC finds its legs, and BTC may need to correct a little this weekend, but we're nearing closer to a bull market each day.
News source: (https://goo.gl/8s8AdH)
Credit: #CoinSAGE Telegram Channel
