While the rand continues to experience one of its worst weeks of 2018, Bitcoin has seen a remarkable rise in fortune.<\/p>\n
The biggest cryptocurrency climbed as much as 5.4% Tuesday to $9,412, the highest it has been since March.<\/p>\n
This amounts a 20% gain in the\u00a0the past week and 37% for the month of April, meaning the cryptocurrency is on track for its best month since its record-breaking December.<\/p>\n
“Coming off the back of a period that seemingly focused on claims that we were seeing the bubble finally burst, there is a feeling that markets are seeing a more optimistic tone return for cryptocurrencies,” said IG Group<\/a><\/strong> market analyst Joshua Mahony.<\/p>\n “With a host of countries having reviewed what steps to take with respect to targeting the sector, we are now moving into a period that should have greater certainty from a policy standpoint,” he said.<\/p>\n One major factor which helped Bitcoin’s price to rise was the passing of the deadline for the completion of US Federal income tax<\/strong>, which occurred a week ago on 17 April, Mahony said.<\/p>\n “We have seen a circa 16% gain since that date. With substantial tax payments due for such a blockbuster year, there is no doubt that the tax-selling seen in recent months will have played a significant role in dragging crypto prices lower over recent weeks.”<\/p>\n “Given the substantial sell-off we have seen in crypto prices, it would make sense for many large crypto holders to declare their earnings at this current rate to shift assets into a more tax-efficient holding method. The gains we have seen since that tax day point towards a feeling that the shackles have been taken off somewhat.”<\/p>\n The second thing to consider is that Bitcoin was not the only currency which has seen a change in fortune<\/strong> over the time period, said Mahony.<\/p>\n “Looking across the spectrum at some of the altcoin, we are seeing a sharp rise in some of the smaller cryptos as well, with ripple (XRP\/USD +88%), bitcoin cash (BCC\/USD +93%), ether (ETH\/USD +34%) and stellar lumens (XLM\/USD +34%) all gaining significant ground over the past week,” he said.<\/p>\n “This rise in altcoins highlights a significant shift in market confidence, which is something that has been missing for some time.”<\/p>\n
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