Binance posts major profits! Across the market, Bitcoin has increased by 28% in the last month from around $4,000 to around $5,000. This is the biggest spike since December of 2018.
Sentiment around cryptocurrency has improved in the market. Binance has recorded a relatively large profit in the first quarter of 2019.
According to The Block, Binance generated over $78 million dollars in profit in the first quarter of 2019, up 66% from the first quarter of 2018.
This substantial increase in profit for Binance is interesting given the volume of the cryptocurrency market being at an all-time high in the earliest parts of 2018. That volume lead to the 2017 Bull Run that led Bitcoin to climb to $20,000.
To recap, we all know that 2018 wasn’t the best year for cryptocurrency in terms of price. Cryptocurrency experienced an 80% decrease in price for Bitcoin, while other coins lost even more than 80%. Despite this, Upbit, South Korea’s biggest cryptocurrency exchange, posted a $120 million dollar profit.
Coinbase, the major US-based cryptocurrency exchange, recently secured Series E funding from Tiger Global, bringing in $300 million in new money – its valuation is sitting at roughly $8 billion dollars.
Asiff Hirji, the president and COO of Coinbase, released a statement in October of 2018 saying:
“Today, we’re pleased to announce that Coinbase will add an additional $300 million of investment at a valuation of over $8 billion to accelerate the adoption of cryptocurrencies and digital assets. The Series E equity round is led by Tiger Global Management, with participation from Y Combinator Continuity, Wellington Management, Andreessen Horowitz, Polychain and others.”
The cryptocurrency market remains down by about 78% in valuation; however, it is clear that investors are becoming more and more confident in long-term survivability in the market. Slowly but surely, confidence is starting to spring forth in the cryptocurrency industry – likely stemming from the resilience of the industry and 2018 seeing high developer activity in the cryptocurrency sector despite severe decline in the valuation for most cryptocurrencies.
Xapo CEO Wences Casares wrote that the chances for Bitcoin succeeding over the long run have drastically increased due to the record of accomplishments of the cryptocurrency for the last 10 years. Despite many projects failing and succumbing to the loss of capital due to the decline in valuation, other projects have managed to show signs of growth and improvements in key areas, such as compliance and institutionalization.
If we are to look at the past for guidance, Bitcoin and the rest of the cryptocurrency market have moved in cycles. Bitcoin would endure teeth-clenching corrections of up to 90%, recover, and set a new high. It has yet to be seen if the cycle will repeat itself soon. One technical analyst suggested that Bitcoin might be in its “blow off phase”, or the last phase of the bear market.
Currently, Bitcoin is still down 75% from its high. We need to see key resistance turning into support to confirm the beginning of a new rally. That would be from around $5,000 to $6,500. We are, however, seeing confirmations of positive news – Chinese investors are buying in droves and Google Trends are spiking positively. What do you think? Let us know what you think on our Facebook page!