Bitcoin and Cryptocurrency Market Appreciates 30% Over The Last Month As Institutional Participation Increases

With the global economy going on a tailspin due to the Coronavirus pandemic, investors are increasingly turning to crypto markets to protect their capital. As per the latest stats on WorldCoinIndex, the cryptocurrency market cap has appreciated 30% over the last month.

On the other hand, traditional stock market indices like Dow Jones have remained almost flat with no returns over the last months. Besides, Dow Jones has also corrected over 30% from its all-time peak of over 29,000 in mid-February 2020.

While the traditional stock market remains absolutely jittery at this stage, crypto markets have taken the lead and restored confidence among investors. Over the last month, the world’s largest cryptocurrency Bitcoin has appreciated 35% as on date.

One of the major events driving BTC price northwards has been the Bitcoin halving event that occurred last week on May 11. Bitcoin halving is a periodic event that occurs for every 210,000 blocks mined or roughly 4 years wherein the miners rewards are reduced to half.

This is basically an event baked in Bitcoin blockchain’s algorithm that triggers every four years and increases the mathematical complexity of mining new blocks as we approach closer to the maximum supply of 21 million.

Historically, investors’ interest for Bitcoin has grown around the halving period which usually drives its price higher. In the last one month, the BTC price has appreciated from $7000 levels to now at around $10,000 levels. At press time, Bitcoin is trading at a price of $9663 with a market cap of $177 billion.

However, along with Bitcoin, several altcoins have also played a crucial role in keeping the market momentum going. The world’s second-largest cryptocurrency Ethereum has also appreciated over 20% over the last month. Thanks to some new developments towards the launch of Ethereum 2.0.

Some of the other top-ten altcoins which have given stellar returns include Ethereum Classic (ETC), Stellar Lumens (XLM), NEO (Neo), and Tron (TRX). Some of the lesser known altcoins like 0x (0x), Electroneum (ETN) and Digibyte (DGB) have also appreciated over 100% in last 30 days.

Well, some analysts have said that institutional participation is on a rise over the last few months. Besides, with the global economy expected to contract 3% as per the IMF prediction, Wall Street investors are increasingly putting their focus on Bitcoin and its derivative products like Bitcoin Futures and Options.

Well, institutional participation can certainly drive the market ahead bringing back Bitcoin back to its all-time-high levels of December 2017. Recently, author of popular book Rich Dad, Poor Dad and investors - Robert Kiyosaki - has slammed the government over their failure to handle the economic downturn.

More importantly, Kiyosaki has predicted that Bitcoin will touch $75K in the next three years.