SFOX Report Shows Bitcoin Transactions Register New Yearly High, Bear Market Could End Soon
Bitcoin (BTC) and the whole cryptocurrency market have been in a bear trend since December 2017. After reaching their all-time high at that time, they fell and the whole crypto market plummetted.
This was something very negative for the space because several companies had to shut their operations down and many projects failed. However, there are some signs that show that a recovery could be starting to take place.
Bitcoin Transactions Hit New Highs in More than a Year
According to the SFOX Crypto Volatility Report from February 2019, they analyse the health of the cryptocurrency market. They take into account different things: price momentum, market sentiment, and the advancement of the whole sector. This month, the report seems to be bullish about the future of the digital asset.
Some of the findings of the report show that the market is interested in privacy features. Litecoin (LTC), the fourth largest digital asset in the market, registered a 25% increase during the last 30 days. Moreover, crypto volatility in February reaffirmed the market interest in privacy and Exchange Traded Funds (ETFs).
The crypto market outlook is currently mildly bullish. The report was also mildly bullish at the end of January. Nonetheless, the index is currently moving towards the bearish direction.
Some of the hype that the market did not have in January appeared in February. For example, Jack Dorsey has been supporting the Lightning Network (LN) and Bitcoin as a whole. At the same time, the number of transactions on the Bitcoin network have reached a new high since January 2018.
Cryptocurrency volatility has also decreased during the Chinese New Year and remained without changes during the J.P. Morgan announcement on their own cryptocurrency, the JPM Coin. Meanwhile, Litecoin volatility spiked when the Litecoin Foundation announced that they were exploring Mimblewimble integration on Litecoin.
Mimblewimble is a privacy protocol that aims at enhancing the fungibility of cryptocurrencies and blockchain networks. Thus, as volatility increased after the announcement, this shows that the market remains bullish about privacy implementations.
Between March 11 and March 17, the Asia Crypto Week could also have an impact on the cryptocurrency market. It might be possible for this convention to attract investors and help increase interest in the cryptocurrency space.
Furthermore, CBOE BTC futures expire on March 13, and BitMEX BTC futures expire on March 29. Around the time of futures expirations, volatility in the market increases.