Bitcoin Tries To Interrupt Its Downward Spiral
FxPro Financial Services Ltd | Dec 18, 2018 08:22AM ET
Over the past 24 hours, Bitcoin adds more than 8% and trades around $3,500, showing the strongest rebound in the latest 3 weeks. Along with the growth of the BTC price, trading volumes are also growing, which confirms the serious mood of buyers. Together with the benchmark cryptocurrency, as always, the entire altcoin market has also returned to growth. The main altcoins add from 9% (ETH) to 26% (EOS).
According to Trustnodes, in November alone, finished ICO projects sold 416,000 raised ETHs, while about 3 million coins remained in their hands, which directly indicates the prospect of further sales.
We observed a similar rebound (albeit not confirmed by volumes) in November but rebound was short-lived and further sale-off push the cryptocurrencies to new multi-month lows.
So far, it can only be said that the foundation for steady growth is has not started yet.
In recent days, there have been some optimistic statements from well-known crypto enthusiasts, including early investors in Bitcoin and the founders of the largest crypto exchange - Gemini - Winklevoss twins. In an interview with Bloomberg, they confidently stated that they were quite comfortable with such bear market, having long been accustomed to being pragmatic about cryptocurrency.
It should be noted that over the past year many companies have prepared products for easy investment in cryptocurrency for both retail and institutional investors. It seems that there are fairly large number of investors on the market waiting for the start of a new rally, but unlike last year, these are not random people in the market.
Given the high recognition of cryptocurrency and ongoing infrastructure development, the investment volumes can also grow significantly. However, this time there may be no rush, as big business does not have excessive emotionality and relies only on the most favorable conditions. In this case, the maximum benefit is the minimum prices, or investments in projects with a proven business model.
Alexander Kuptsikevich, the FxPro analyst
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.