The cryptocurrency market seems to be showing signs of renewed inclines, with cryptocurrency traders feeling confident about the direction of the market. In July, following the sell-off that caused the market to crash, the market cap of digital assets has risen bu $280 billion – a positive sign in the industry that could lead to a sustained rally.
According to crypto asset mangement group CoinShares, investment products linked to crypto have increased steadily over the month, bringing in $400 million over the month.
According to Financial Times, James Butterfill, the head of research at CoinShares noted:
“We’re starting to see some bold investors come in and take long positions, and people are not adding to short positions now,” said James Butterfill, head of research at CoinShares.
Over the past week, Bitcoin has gained 5.4%, a steady increase after a massive fall from the leading cryptocurrency. Leading altcoin Ethereum is looking at a 9.9% gain over the past week, with Binance Coin (BNB) slightly more with a 12.6% increase in the past seven days.
While it’s still only early signs of a rebound, the increase in values – especially a slow steady incline – sparks positive sentiment in the market. If the bears step back and the bulls step in, we might be looking at s healthy short-term in the market.
As token prices improve and the market sees an overall increase in value, total assets under management (AUM) in cryptocurrency investment products have increased back to prices seen in early June according to CoinShares. This indicates more investor interest in the digital asset market following a risky period of low trading.
However, the rally might be choppy according to the managing director at blockchain form R3 Charley Cooper. While not bearish, Cooper cautioned that this might not be the upturn the market is waiting for. He said:
“I think the fact that prices have stabilised in no way indicates an inevitable upswing.”