April has proven to be a positive month for cryptocurrency hedge funds, with one reporting a more than 80 percent gain, making it its first positive month of the year.
In recent weeks, bitcoin has steadily been making its way back to the $10,000 mark. However, it has yet to reach that milestone once again. At the time of publishing, the digital currency is trading at $9,338, according to CoinMarketCap.
According to a report from MarketWatch, momentum has subsided somewhat with questions being raised as to whether this is a concern for cryptocurrency owners. Notably, though, Mati Greenspan, senior market analyst at eToro, doesn’t think this is the case, adding:
The lows are still getting higher, as are the highs and the fact we bounced off $9,000 this morning is a good thing. Certainly a break of $10,000 would be good, but consolidation is great for adoption.
The first three months of 2018 have proven to be a tough time for the digital currency market. This was particularly true for bitcoin, which dropped to $6,200 in February. Since then, though, the industry has picked itself up and is slowly gaining traction. With the first three months over, many have been projecting what the rest of the year will produce. So far the second quarter of the year is proving a positive start.
According to the report, Eurekahedge, a research and data providing firm specializing in hedge funds, the Eurekahedge Crypto-Currency Hedge Fund Index gained 83.86 percent in April. Not only that, but it’s reported that April has experienced the best monthly performance since November 2013. Ether increased by 69.4 percent in April, whereas Bitcoin Cash rose by 101 percent.
Several factors may be impacting the positive direction the market is heading in. One is that the CEO of Nasdaq, Adena Friedman, said last month that the stock exchange ‘would consider‘ becoming a cryptocurrency exchange. However, she stipulated that regulatory issues would first need to be overcome. Additionally, the Gemini exchange, founded by Tyler and Cameron Winklevoss, are teaming up with Nasdaq to use its SMARTS technology to monitor for potential cryptocurrency trading abuses.
Whereas, Goldman Sachs has revealed that it is taking steps to open a bitcoin trading operation. While it may not be what some bitcoin enthusiasts want, it could lend legitimacy to the market.
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