The Sooner Cryptos Fall, The Higher They'll Fly Later
FxPro Financial Services Ltd | Nov 30, 2018 09:19AM ET
The crypto market switched to a corrective upturn, apparently, market participants decided that the prices actually reached the “bottom”, after which the value of the benchmark cryptocurrency – bitcoin (BTC) – could no longer decline. Over the past 24 hours, the Bitcoin jumped by almost 9% and is trading above $ 4400. All altcoins immediately followed the largest coin, showing growth from 3% (XRP) to 31% (TRX). The total capitalization of the crypto market jumped by $11 billion.
Have we really reached the “bottom”? That is the question. Many market participants decided to follow optimistic approach. The BTC decline to $3500 really became an important point of support for cryptocurrency, at which the market began to buy back Bitcoins from the lows. However, it should be noted that in the current phase of the market, speculators can soon begin to take profit, which may well trigger a new wave of sales.
And then a new technical goal may be an area of about $2750, which will mark an 85% drop of digital asset from an all-time high around $ 19500.
Among the news, the market was helped by Nasdaq statement about the launch of Bitcoin (BTC) futures in the first quarter of 2019 in partnership with VanEck, despite the current market downturn. No matter how it is, the cryptocurrency market volatility has always been its "trademark", creating opportunities to make money on the rates fluctuations, that's why Wall Street follows the previously outlined plan.
In late January, Bakkt will also have to launch its BTC futures with a physical settlement. VanEck still wants to get approval from the SEC for the launch of Bitcoin ETF. Many companies ready to launch custodial services for institutional investors. Judging by the plans of the companies, Bitcoin (BTC) can really get a boost in as soon as in January 2019.
But there is an important point with regard to this situation: the lower the price of digital assets will be at the beginning of the next year, the higher the possible demand of big business and retail investors it will see later.
Alexander Kuptsikevich, the FxPro analyst
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