The last month has been an interesting time for the crypto world. Most cryptocurrency markets witnessed a record-breaking crash in mid-March, before recovering most of their losses by April.
The overall crypto market appears to be in a strong state of recovery, and many cryptocurrencies and crypto projects have experienced a dramatic uptick in activity thanks to the lockdown most countries are experiencing.
In light of the current market situation, here is a look at how top cryptocurrencies and altcoins have fared since the March 12 crash, as well as predictions of where the market could be headed and whether an upcoming altcoin resurgence could be in the works.
Bitcoin Took a Hit But is Poised to Come Out Stronger
In March, the price of bitcoin (BTC) dropped by 30% in value, from $9,000 to $6,200. During “Black Thursday,” on March 12, the BTC/USD rate dropped to a 2020-low of $4,125.
However, BTC managed to recover despite its recent correlation with equities and is well-positioned to potentially outperform other major asset classes in the next 12 to 18 months.
In fact, Bitcoin moved into Easter weekend on the brink of a breakout above $8,000 after rallying by more than 100% in less than one month.
With the block reward halving being just one month away traders may attempt to price the event in, which would see Bitcoin rise to at least $8,100 from a short-term perspective.
Stablecoins Are Moving Into the Limelight
As we have seen during past market corrections, crypto traders like to move their digital funds into stablecoins to withstand the volatility before they reenter the market. As a result, the market value and trading volumes have increased for stablecoins since the March 12 crash.
Tether USD (USDT), USD Coin (USDC), and Paxos Standard Token (PAX), Binance USD (BUSD), and TrueUSD (TUSD) have all moved up in the digital asset rankings in the past few weeks as more funds have flown into stable digital currencies.
Currently, stablecoins are effectively only being used by crypto traders to move in and out of risky digital assets. However, an increase in stablecoin adoption by cryptocurrency users could also increase the use of stablecoins in payments.
Halving Effect on Bitcoin Cash and Bitcoin SV
The ‘halving season’ for the now-separated Bitcoin chain finally kicked off on April 8 with Bitcoin Cash (BCH) undergoing its first-ever post-fork halving. Followed by Bitcoin SV (BSV) also undergoing its own halving on April 10.
Following these events, BCH is displaying rather grim on-chain metrics and very little price movement in t6he past 24 hours.
On the contrary, the BSV chart is showing signs of being slightly more bullish, with the coin currently up by about 0.65 % in the last 24-hour trading period as the halving apparently triggered a slight upward momentum in BSV price action.
With both the BCH and BSV halvings now finalized, attention now will definitely turn to the BTC block halving, which is scheduled to take place in mid-May 2020.
Altcoin Resurgence: Long-Term Crypto Outlook looks Bullish
Short-term damage may be sustained to the crypto market, but analysts are convinced of an imminent BTC and altcoin resurgence, as the long-term outlook is anything but bearish.
In the April edition of the newsletter “Crypto Trader Digest,” BitMEX CEO Arthur Hayes predicted that BTC has the potential to retest $3,000 yet again if global markets roll over.
This could lead to altcoins such as Ripple and Ethereum also experiencing a price surge as demand for crypto increases amid the coronavirus pandemic fears.
In fact, Coinbase recently explained that customers on its platform typically buy 60% more than they sell. Still, during the crash, this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto during stints of extreme market volatility.