Crypto analytics firm SFOX has released their most recent report on the state of the crypto markets, finding the outlook for May to be ‘mildly’ bullish for Bitcoin.
According to the most recent report and SFOX’s Multi-Factor Market, BTC continues to look mildly bullish entering the new month. While the final week of April appeared to show some price contraction for BTC, with the currency experiencing a sudden dip following news of Tether and Bitfinex being accused of market manipulation, SFOX continues to support positive price growth for the currency.
SFOX also claims that Bitcoin has continued to hold control over the marketplace despite the rally in coin prices for other top cryptos. BTC market dominance climbed throughout the last month, with the original cryptocurrency piling on valuation compared to other currencies. SInce the start of April, Bitcoin has grown to 6 percent in market dominance, rising from near 50 percent to 56 percent, as of writing. SFOX writes that Bitcoin movements for other top cryptos, such as Ethereum, Litecoin and Bitcoin Cash correlated with Bitcoin throughout last month, despite the latter’s growing development.
SFOX also writes that, moving forward, investor interest should turn towards developments related to a Bitcoin Exchange-Traded Fund and other indications of substantial institutional investment Overall, the change in market sentiment from SFOX has not changed in the last month, with Bitcoin continuing to register a “mildly bullish” indicator from the analytics firm–the same metric it generated last month.
However, the company reports that the primary metrics used for gauging Bitcoin price performance–price momentum, market sentiment, and continued advancement of the sector–gives a positive outlook for both the price of BTC and the overall industry of cryptocurrency. Nonetheless, SFOX’s rating for BTC has ranked as ‘mildly bullsih’ for the fourth month in a row, a condition that the firm addressed in the more recent update,
“We determine the monthly value of this index by using proprietary, quantifiable indicators to analyze three market factors: price momentum, market sentiment, and continued advancement of the sector. It is calculated using a proprietary formula that combines quantified data on search traffic, blockchain transactions, and moving averages.”
SFOX cites strong Bitcoin fundamentals for being the primary driver for its rating into the fifth month of the year, with both price momentum and institutional interest showing signs of growth and giving an overall bullish indicator for BTC. The start of April, which kicked off one of the most bullish rallies for Bitcoin valuation in over a year of trading, was largely driven by one institutional or whale purchase–at least according to data compiled by the analytics firm,
“The beginning-of-April crypto rally, despite having injected the market with renewed volatility, appears to have primarily been driven by one large buy order rather than fundamentals, and the market appears to have largely normalized again at new levels post-rally.”
Despite featuring heavily into previous years of investment, SFOX claims that FOMO has taken a passenger seat to overall industry growth, leading investors to buy cryptocurrency for reasons supporting long-term valuation and market interest.
