Following a mild correction on Tuesday, bitcoin (BTC) was back near $5,850 on most major exchanges, a sign that traders were already looking past the Binance security breach that resulted in the loss of 7,000 BTC. Bitcoin entered the month of May mildly bullish, according to the SFOX Multi-Factor Market Index, and may have actually exceeded expectations through the first week of the month.
Outlook: Mildly Bullish
Earlier this week, the team at SFOX released the monthly crypto volatility report, which identified key trends influencing the price of bitcoin and large-cap altcoins in April. The SFOX Multi-Factor Market Index remained mildly bullish heading into May as bitcoin continued to exert a strong gravitational pull on the broader cryptocurrency market.
The ‘mildly bullish’ outlook is similar to the one given at the end of March, which was just before bitcoin exploded higher. The leading digital currency gained more than 30% in April, helping to engineer a more sustainable recovery throughout the market. Even a slight uptick from current levels would lead bitcoin past $6,000 for the first time since November. It would also give BTC a four-month winning streak for the first time in years.
Bitcoin’s resurgence has come at the expense of altcoins and tokens, whose share of the overall market has dwindled rapidly over the past two months. Bitcoin now accounts for more than 56% of the overall market cap and its gains have picked up where the likes of Litecoin (LTC), bitcoin cash (BCH) and Binance Coin (BNB) left off. Before April, these coins were the biggest movers and shakers.
The SFOX report also tempered concerns that the three-month rally in bitcoin was due to a fear of missing out, or FOMO. While it’s impossible to separate FOMO from dominant market cycles, SFOX says “the data interpreted by our index imply that crypto is continuing on a sustained positive trajectory, independent of more transient surges in market interest.” This means…