In a report on June 6, 2019, SFOX, a crypto analytics firm outlined that the cryptocurrency market has moved from “mildly bullish” to “uncertain”. Similarly, the Bitcoin FOMO (fear of missing out) which helped to spike the virtual asset’s price to $9,000 is now over.
Changes in SFOX Multi-Factor Market Index
Per the blog post, the SFOX Multi-Factor Market Index has moved from the “mildly bullish” point it was in May 2019 to “uncertain” at the beginning of June 2019. The analysis was carried out on 8 different cryptocurrency exchanges using metrics such as the price momentum, market sentiment, and continued advancement of the sector.
To that effect, the firm noted that in the month of May, Bitcoin was used as a hedge against global markets. The latter is as a result of its sudden increment in price shortly after the China-U.S. trade war began. The surge in Bitcoin’s price was also accompanied by that of altcoins which SFOX says “highlights the potential for BTC to function as a unique hybrid of gold’s status as a store of value and the S&P 500’s status as a risk asset.”
The crypto analytics firm also said it is usually unclear to ascertain how much of the rapid growth in the price of crypto assets is as a result of underlying fundamentals and how much is caused by FOMO. Nonetheless, the growth in the space of recent has been backed with high volatility and changes in Bitcoin’s price as well as other assets.
Crypto Market Has Matured Due to Maintained Prices Despite Events
SFOX, however, noted that the crypto market has matured given that the Securities and Exchange Commission’s (SEC) postponement of two Bitcoin ETFs in May was unable to drag down Bitcoin’s price. In the same vein, the market was undeterred by the hack on Binance, a Malta-based cryptocurrency exchange which lost 7,000 BTCs on May 7, 2019.
On the contrary, SFOX’s report noted that the market was recently affected by the huge sell of 5,000 Bitcoins by a whale on the virtual currency exchange, Bitstamp. It outlined that since a single exchange could negatively impact on the entire crypto space, it shows the sphere still has a long way to go.
