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Crypto Market Surges Then Drops, Can The Rally Continue?

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crypto market

About a year ago, Bitcoin was well on its way towards reaching its current all-time high of over $20,000 per coin. In fact, its value was somewhere at $19,000 on December 16 and 17. These days, however, the crypto market could not be more different, and the coin is struggling to remain above $3,700.

Bitcoin has had quite a journey in the last 45 days. On November 13th, its value was over $6,300. Only one day later, and a day before BCH hard fork, the entire market crashed, and Bitcoin started dropping. Before long, the coin was at its new bottom, with its value being only $3,200. The coin basically lost half of its value, and it struggled to grow ever since.

Meanwhile, investors started speculating whether BTC will recover at all, or will simply drop to zero. Some even decided to pronounce it dead once again, which marks more than 300 times in a single decade. Then, on December 17th, things slowly started to change, and the market started experiencing a new surge. Within days, Bitcoin climbed up, and it has been above $4,000 ever since.

At the time of writing, BTC value stands at $3739. However, investors are still not convinced, and many are questioning whether this is a real rally or a false hope.

Is the crypto market rally real?

As it is usually the case with cryptocurrencies, the question is easy, but the answer is infinitely more complex. In a way, the rally is actually real. Ever since the surge started, the total crypto market cap gained over $40 billion, which is around 40% of its value. In a single week, the market cap climbed from $103 billion to $144 billion. While this is impressive progress, it is still tiny considering the losses experienced in 2018.

Within a single year, the crypto market lost more than $700 billion, dropping from $831 billion (January 1st, 2018) to $103 billion (December 2018). From this perspective, the so-called “rally” is just a small attempt at recovery.

However, the current situation is still a significant change for the better when compared to the one from a few weeks ago. Crypto analysts have been trying to find the reason behind the rally, with some of them reporting that people are trying to reduce exposure and close out high-risk sell positions before holidays. This movement might be what is actually causing the rally, however, others have also reported an increase in BTC hash rates, which might indicate the return of the miners as well.

Even if the original rally happened by accident, if it brings miners back, it is possible that the growth will continue. Otherwise, it is expected that cryptos will continue their slide in the near future.

What to expect next?

While there is every possibility that the rally might be the real one, it is still too early to tell with any certainty. The changes are very impactful right now, and anything can trigger another drop at any time. Many experts believe that the current surge is nothing to be excited about and that the real change will not come before the launch of Bakkt exchange and the approval of Bitcoin ETFs.

There are some who believe that these two events, both currently scheduled for early 2019, will be the cause of a real price surge, one that might bring BTC back to its former value of $20,000 per coin. However, there are also those, such as IMF’s former head, Kenneth Rogoff, who believe that Bitcoin’s future price will be only a fraction of its current value.

Whether these experts remain bullish or bearish on crypto is irrelevant, the fact is that space requires regulations that will bring some form of stability. Apart from that, the Bakkt project and Bitcoin ETF approval would likely help a lot by bringing institutional money to space, and allow it to evolve further. A lot depends on the events scheduled for the near future, and it will likely be impossible to predict the future of crypto until these events take place.

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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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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Bitcoin

Wisebitcoin Launches Professional-Grade Crypto Exchange

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Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.

In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.

For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750. 

Beyond leverage, Wisebitcoin additionally offers a simple and…

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