NEM, the cryptocurrency that held a lot of trading volume in the hacked exchange Coincheck, has spiked upwards of 20 percent on news that the aforementioned exchange has resumed normal trading activity.
This is a nine-week high for the cryptocurrency, which has been able to get a lot more of its trading volume back thanks to Coincheck righting itself. However, while NEM’s spike in price is understandable and predictable, based on the catalysing effect of the exchange, there are bigger questions looming about a market-wide rally.
Bitcoin has found a very steady place in its price bracket, but there are waves and flows of ups and downs coming from other altcoins, making many wonder if there is perhaps another bull run emerging.
The likes of Binance CEO Changpeng Zhao believes that this is the case, but he also states that he cannot predict exactly when and how the rally will come. Many have looked to the past, regulatory acceptance, adoption, and the potential of good news on the horizon for Q4 as reasons to suggest the rally could be sooner than expected.
NEM is the biggest earner over the last 24 hours or so, and its growth is amid a mostly stable market with Bitcoin almost rock steady in the $6,400 range.
Following Coincheck’s announcement that they were resuming trading activity on their exchange, NEM surged to highs of $0.114, before falling to $0.103 as a result of profit taking. Its price has since climbed back up and is currently sitting near its current highs.
NEM is leading a pack of altcoins which are showing good gains in general across the market, with XRP following behind with close to a four percent growth spurt. Earlier in the week, Bitcoin Cash was also pushing high levels ahead of its upcoming fork but has since seen a fall in price in a correction.
Potential for a bull run
With Bitcoin settling so comfortably in its right price bracket, there is not much need to look at the major cryptocurrency to lead the next bull run — as has often been the case in the past. Instead, with many of the top altcoins showing good progress, there is the argument that one should look to a combination of good performances there to pull the bulls out.
The altcoin bull run might precede a real big one coming from Bitcoin as even Zhao states that, although he believes there is a Bitcoin bull run coming soon, he cannot say when.
Zhao has said he expects another bitcoin bull run to happen "sooner or later", telling CNBC: "Even if I don’t know what will catalyze a Bitcoin bull run, I am certain it will happen...Sooner or later, something will trigger it."
It could well be that a smaller altcoin bull run might be the catalyzing effect that the Bitcoin market needs. Its lack of volatility has been mostly well received, but really, its claim to fame has always been massive growth spurts, which have been missing for about a year now.