The latest rally has all cryptocurrencies wondering if it’s too early to the party yet.
Did we come early?
This is a question that cryptocurrency market participants ponder during each cycle, as each cycle brings its own indicators of the end. The biggest sign for me personally was when I was in a barbershop in Los Angeles. A barber was explaining why he was moving all his coins from Coinbase to an exchange I had never heard of.
In fact, in the general world, cryptocurrency buzz always seems like a good sign of a market bubble. Cryptocurrency seems great right now. As my friend Jim Greco said in a recent piece, this rally has made very little noise so far.
“If you weren’t in the cryptocurrency industry, you wouldn’t have known that Bitcoin had reached $41,000.”
Retail still doesn’t seem to get as much attention as it did during its last peak. And the data points to this. Coinbase’s ranking on the App Store, The Block’s Steven Zheng’s favorite top metric, has been essentially flat since September.
Rallies fueled by institutional players
Of course, you could argue that volume has increased, but only slightly. The 7-day moving average of daily trading volume on December 4 was $27 billion, below this year’s high of $47 billion. Meanwhile, Bitcoin rose 153%.
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