Marcus Swanepoel, CEO of crypto exchange Luno, has predicted continuation of the recent rally in cryptocurrency markets as a result of poor economic data coming out of the world’s largest economies.
He comments on the unemployment rate in the United States which has now risen to nearly 25% as the impact of coronavirus continues to take hold.
“The new month starts with further sets of painful data with the Eurozone GDP falling sharply and the unemployment rate in the US now close to 25%, so it is no surprise that investors are looking at cryptocurrencies.” He said.
“Bitcoin has seen a huge rally and then a fall back over the last 48 hours. The push towards $9,500 stalled with profit taking and BTC is now trading around $8,700, but with potential to again push back above $9,000.
Market thoughts:$BTC – undeniably the most bullish chart, breaking above $9,600 would be huge as it takes out the trendline dating back to 2017.$ETH – Held up surprisingly well. Needs to breakout above $220 before continuation to $250.$LTC, $XRP – 200MA rejection – bearish. pic.twitter.com/gEVqSw0UzD
— Oliver Knight (@OKnightCrypto) May 1, 2020
“Ethereum has also had a very positive week and is maintaining its price at over US$210, currently at $212.”
While Bitcoin and Ethereum have been performing particularly well several altcoins have struggled to maintain similar levels of momentum, with the likes of Bitcoin Cash and Litecoin being rejected from their respective daily 200 moving averages.
With the Bitcoin halving being less than two weeks away traders are clearly attempting to price in the event, although this could cause a spike in interest from retail investors who may be experiencing the fear of missing out.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.