Bitcoin Climbs Back To $8,250 While Ethereum And ERC20 Outperform

The past few days were great for alternative cryptocurrencies (altcoins) and Ethereum, which have all outperformed Bitcoin. The valuation of the crypto market is right now at $348 billion and is moving closer to the $400 billion region.

While many would think that the extreme volatility and uncertainty will cause the altcoins to sink, the investors seem to turn out to the cryptocurrencies with the deepest liquidity and stability. The two major corrections in January and February (that sent the crypto market from $816 billion to $240 billion) are now history – and investors heavily lean towards Bitcoin as the safe haven asset.

Altcoins are in the spotlight over the past few weeks, recording strong gains against Bitcoin and moving differently from the leading cryptocurrency. This week, the ERC20 tokens such as Tron (TRX) and ICON (ICX) all performed well against Bitcoin and Ethereum. The increasing value of these tokens and the rising demand from investors in the global market for minor cryptocurrencies like these – show that investors started seeing their value and have become more confident in the market.

Bitcoin, on the other hand, is once again back to $8,250. Over the past 24 hours, the price has recorded a 3% increase and seems to be surging more than it is sinking (when viewed through a 3-week period).

Saxo Bank is one of the best examples for the investor behavior nowadays. The Danish investment bank that focuses on online trading has stated that it expects the inflow of institutional capital into the crypto market to lead to more surges in the price of the vast majority of cryptocurrencies. Their 2018 2nd quarter report reads:

“If there is a significant pullback in the equity markets, there will be an inflow of money into uncorrelated assets, or assets that lie outside the reach of the traditional financial system in which cryptocurrencies are a potential alternative. The inflow of institutional capital to the cryptocurrency market due to the increase in regulation and investor protection could lead cryptocurrencies to a positive quarter,”

As noted by Saxo Bank, the increase in demand for Bitcoin from institutional investors and retail traders is something that needs to be noted – and something that may set Bitcoin apart from the competition in the future.