Crypto has gone through many in the last 12 months, and while last year's situation indicated that great things could happen, 2018 quickly crushed those hopes.
On December 16, 2017, the cryptographic space, led by the same Bitcoin, reached the heights that no one had ever imagined a few years before. Each Bitcoin was valued at $ 19,000 and the market was worth hundreds of billions of dollars. However, the situation did not last, and the market crashed at the beginning of January 2018, bringing back the digital currencies.
For months, Bitcoin has managed to resist the bear trend at around $ 6,400. However, this situation changed in mid-November, after the second market crash in 2018. The number one coin soon fell to $ 3200, and many believed that this was just the beginning of a downward spiral that will bring all zero.
However, this is the moment when something happened and the situation took an unexpected turn. On December 17, exactly one year after BTC hit $ 19,000, the currency started to grow again. For a whole week since the cryptography market has been traded in the green, and experts are still struggling to find a reason why.
The rally brought the price of Bitcoin to over $ 4,200, effectively increasing its value of $ 1,000 in a few days. However, the growth of the cryptography market has managed to outperform even the Bitcoin itself and the market has grown by $ 40 billion within a week.
As mentioned, other currencies have joined the new wave, with EOS having the biggest gains of over 20%. Although Bitcoin Cash and c have seen massive increases, many believe they are still trying to stabilize after the BCH fork in mid-November.
The rally has raised opinions of experts and assumptions made by analysts around the world. While some believe that this is the beginning of something big for the cryptographic space, others argue that it is only a temporary push that will end quickly. Meanwhile, experts are also trying to find a reason behind the push, with some of them, such as Matt Greenspan of eToro, believing that it has something to do with trading strategies.
According to Greenspan, people are trying to reduce their exposure during the holidays by closing high-risk sales positions. This creates higher prices, which translates into a rally like what the market is experiencing at the moment. However, Greenspan's explanation also predicts that things will change soon, and that encrypted prices are going to go back.
Unfortunately for traders, this has already begun to occur and the market is experiencing massive new price declines as of December 25th. The price of Bitcoin has already fallen to $ 3,828 at the time of writing, with the loss of around 10% of its value in the last 24 hours. Bitcoin Cash, the fourth largest crypt by market capitalization, is recording the biggest losses among the top 10 largest coins, with a decline of over 23%.
What will happen next in the crypt?
It seems that Greenspan's prediction was the right one, after all, at least for the moment. It is impossible to say whether the cryptos will drop at the prices experienced before the rally, or if they will continue to slide further. However, investors remain optimistic about the future, and many of them are convinced that things will change in 2019.
In 2019 several things of great importance are awaited for the cryptic world, such as the approval of the Bitcoin Exchange and Bakkt ETFs. If they arrive, as many hope, the cryptos could experience their biggest wave yet. As always, there are also those who argue that coins will continue to fall until only a fraction of their current prices are worth.
The lack of rules and high volatility are making reliable forecasts almost impossible to achieve, which is why investors have no choice but to wait and see what will happen.
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Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not hold stakes in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.
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