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What Caused the Christmas Crypto Rally?

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Crypto has been through a lot in the past 12 months, and while the last year’s situation indicated that big things might happen, 2018 quickly crushed such hopes.

On December 16th 2017, the crypto space, led by Bitcoin itself, reached the heights that no one even imagined a few years earlier. Each Bitcoin was valued at $19,000, and the market was worth hundreds of billions of dollars. The situation did not last, however, and the market crashed in early January 2018, bringing digital currencies back down.

For months, Bitcoin was managing 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 dropped down to $3,200, and many believed that this is only a beginning of a downward spiral that will take it all the way down to zero.

However, that is when something happened, and the situation took an unexpected turn. On December 17, exactly one year after BTC hit $19,000, the coin started growing once again. For an entire week since the crypto market has been trading in the green, and experts are still struggling to find a reason why.

The rally brought Bitcoin’s price to above $4,200, effectively increasing its value by $1,000 within a few short days. However, the growth of the crypto market managed to overperform even Bitcoin itself, and the market grew by $40 billion within a single week.

As mentioned, other coins joined the new surge, with EOS having the largest gains of over 20%. While Bitcoin Cash and c also saw massive increases, many believe that they are still attempting to stabilize after the mid-November BCH fork.

The rally has provoked expert opinions and educated guesses from analysts around the world. While some believe that this is a beginning of something big for the crypto space, others claim that it is just a temporary boost which will quickly end. Meanwhile, experts are also trying to find a reason behind the boost, with some of them, such as eToro’s Matt Greenspan, believing that it has something to do with trading strategies.

According to Greenspan, people are trying to reduce their own exposure during the holidays by closing out high-risk sell positions. This creates higher prices, which results in a rally such as the one that the market is experiencing right now. However, Greenspan’s explanation also predicts that things will change soon, and that crypto prices are about to slide back down.

Unfortunately for traders, this has already started happening, and the market is experiencing new massive drops in prices as of December 25th. Bitcoin price has already dropped down to $3,828 at the time of writing, with the coin losing around 10% of its value in the last 24 hours. Bitcoin Cash, the fourth largest crypto by market cap, is experiencing the greatest losses among the top 10 largest coins, with a drop of over 23%.

What will happen next in crypto?

It appears that Greenspan’s prediction was the right one after all, at least for the time being. It is impossible to say if cryptos will just drop down to the prices experienced prior to the rally, or if they will continue sliding even further. However, investors remain optimistic about the future, with many of them being convinced that things will change in 2019.

Several things of great importance for the crypto world are expected in 2019, such as the Bakkt exchange and Bitcoin ETF approval. If they do arrive, as many hope they will, cryptos may experience their largest surge yet. As always, there are also those who claim that the coins will continue to go down until they are worth only a fraction of their current prices.

The lack of regulations and high volatility are making any reliable predictions next to impossible to make, 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 have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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