Bullish sentiment creeps back in as cryptos bounce back with double-digit gains
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Cryptos have bounced back in a big way, with mid-cap altcoins like Filecoin, Monero and VeChain surging by as much as 50 per cent in the last 24 hours.
Nearly every top 100 crypto was up by double-digits, with Bitcoin gaining 13.8 per cent to US$41,700 ($53,600) and Ethereum advancing 24 per cent to US$2,900 ($3,730). But that still left most coins — save a few like Polygon (MATIC), Harmony, and Solana — down for the past week.
Solana, the No. 15 crypto, was up 30 per cent to US$46.92 after Coinbase said it would list the smart contract platform.
Overall only stablecoins, which tend to be inversely related to the overall market, were in the red.
BTC had also moved back over its 200-day moving average on the daily chart, in a potentially bullish sign.
The daily candle of #Bitcoin almost fully erases the drop of yesterday.
This means; remain calm.#altcoins will follow suit.
Market is still in a bull cycle.
Levels to watch in the chart. Breaking above resistance -> $47-49K next. pic.twitter.com/34mgyfohS9
— Michaël van de Poppe (@CryptoMichNL) May 20, 2021
The crypto fear and greed index was at 19, still indicating “extreme fear”, but up from yesterday’s 11. But at least on Crypto Twitter, positive sentiment seemed to be returning to the market.
Remember, this is only “Stage 1” of the bull market
Stage 2 ATH will have thruster pumps 🚀🚀🚀
— Crypto ฿itlord (@crypto_bitlord7) May 20, 2021
In the United States, the US Federal Reserve announced it would release a research paper this summer exploring a central bank digital currency. China is also experimenting with a digital currency, distributing millions of yuan in a pilot project.
The US Treasury Department also proposed requiring that businesses that receive crypto-assets worth more than US$10,000 be required to report them to the Internal Revenue Service.
“Despite constituting a relatively small portion of business income today, cryptocurrency transactions are likely to rise in importance in the next decade, especially in the presence of a broad-based financial account reporting regime,” the 24-page report on tax compliance says.