November was pretty nervous to cryptoinissors: optimism did not inspire bitcoin’s course, nor the situation on the market as a whole. BTC nevertheless left the $ 6400 flute and for three powerful drawdowns dropped to $ 3750. Those who just kept lost 40% of the balance in three weeks. Many altkoins were even worse — the collapse did not even spare coins from the Top 30 on capitalization.
It was not bad at first, Ripple was held, but it is believed that this is due to the artificial support for its course and the subsequent overflow in the XRP of some market participants. On the chart below, which he at some point surrendered and left in the peak.
This is not the first sharp decline in the cryptocurrency market, and experienced investors in general have already become accustomed to the like. At one time, the reason for the fall of Bitcoin is 29% and reducing the capitalization of the market has twice the news that China has banned the banking sector with Crypt. Similar prohibition of the Chinese regulator dropped the price by 31% and in 2017. In addition, there were several more drawdowns, in two of which, as we remember, cryptobiri is mixed. In 2014, Mt.Gox closed, which also sent the price of the BTS down. And in 2016, his course was almost a quarter to sell BitFinex Exchange.
However, no difficulties and drawdors kept Bitcoin from reaching $ 20,000 in December 2018. Yes, the cryprotes and fell, and there were long intervals in the Fleet, but in the end, it still steadily grew. Look at the schedule below: it perfectly shows how BTC is inclined not only to play the fall, but also to grow to grow it out. Of course, the current situation knocks out newcomers from the rut. Someone even decides to forget about the cryptomocks at all, but to say goodbye to him now is the same as to get out of the game in 2015.
And we can observe a similar picture not only at the crypton. Remember the promotions of Internet companies, the price of which in 2000 was Bila Records, and in 2001-2002 he collapsed in tens of times. Securities of such Titanium as Amazon.com during this period fell to $ 7, losing 98.7% of the cost. Now their course exceeds $ 1500. On the chart below, by the way, it is perfectly seen that amazon.com just like cryptocurrency, was in a long fuel in front of the growth. However, it is important to take into account that the rate of events at the crypton is much higher than on the stock.
Of course, the media and many chat rooms have already been filled with messages that «bubble burst». However, this only demonstrates the admission of authors about the nature of what is happening. In fact, the market has several reasons for a similar decline. Some of them can work in combination, part — only assumptions, but this factors could form the basis of the November Strait.
First, the combination of negative news and steps from prominent persons of cryptosoces affected. It all started from the Bitcoin Cash Forms War, which forced its participants to sell Bitcoin. Volumes were essential — and partially missed the market. Then — negative news on the transfer of the launch of the Bakkt platform. In addition, the hopes for the solution of the ETF question in the autumn period were not justified.
You may have played the role of inside and manipulation. One of the waves of the drawdown occurred before the news, which for sure they had to upset the market. There is a suspicion that many whales had insides on this topic, and they closed the position in advance. It also has the opinion that large capital is put on the market to buy before growing at the best prices.
Could not not affect courses and traditional pre-New Year cachewood. It so happened that the participants of the markets (and currency and stock) often seek to bring part of liquidity to the holidays. Last year, the cryptosphere during this period was at too much hepe, so there was a similar phenomenon. Now we see a significant reduction in capitalization in November.
The accumulated voltage of market participants has greatly affected the situation. Investors and Hodlers were already tired of the decline, were on the emotional face and had hopes for Bakkt and ETF too long. Many of the resulting jolt had enough to lose the remnants of self-control and remove the remains of deposits from the market.
However, no matter how stressful for the cryptocurrency market has not come out — investment funds retain confidence in the digital assets industry. At the moment, professional market participants are waiting only for the best recovery point. And she will definitely appear in the foreseeable future, since the market has accumulated a lot of fundamentally favorable news.
First of all, most countries practically refined the regulation of this industry, which will clarify for capital owners. Also, it is also impossible to forget about the launch of the Bakkt cryptocurrency tools trading, created by the Giant of the Financial World ICE (NYSE Maternal Exchange) in partnership with Starbucks, BCG and Microsoft. Over your own platform, one of the largest management assets of Fidelity Investments companies is actively working. The preparation of the crypto-platform was announced in NASDAQ — while there is information only about their tool for analyzing prices cryptocurrency. All three platforms will be entered into the market of institutional investors and finally fill the market with liquidity.
Bloomberg, in turn, published information on the mass occurrence of large investors to the digital assets market through out-of-the-counter transactions. Work out the topic of release of own tokens and regulators. The head of the International Monetary Fund, Christine Lagard, in a recent speech, said that the Central Bank of Sweden, Canada, China and Uruguay are already seriously considering this step.
Also soon, finally, the Bitcoin-ETF question may be resolved. It will be discussed in SEC (US Securities Commission) already on December 29. After that, the regulator will remain another last date for transfer — February 27, but they no longer have the right to do more. One of the most promising applications was filed by great financial market authority — the Chicago Exchange Exchange (CBOE). Approval of any application for ETF will immediately give a tool to enter the cryptocurrency of any investor up to American pension funds.
There are also pure technical signs of the future colossal growth of the cryprot. We have already mentioned its cyclicity. In 2014, we have already seen the situation identical to the current one. In this graph, we first observe the explosive growth of the time, and then a decrease and a long stagnation.
And here is the current situation that literally repeats the events of four years ago. The same multiple height, then the decline and the flask — and now the market is again preparing for a jump. In the Fleet, which is now most likely to wait for the market, the main goal will be the battery of Bitcoin and other fundamentally strong coins so that with the increase in their cost to get a maximum profit.
So far there is no clarity how long the flask will last, the following decrease. The market is currently too subjected to manipulations, and the emotional attitude of its participants makes a vanity of instability. Therefore, it is necessary to carefully monitor the situation in order not to miss a turn. It will be reasonable to enter the market parts along the reduction of courses in order to average the balance of the balance at an optimal price. It makes sense to watch not only toward Bitcoin, but also for fundamentally strong altcoins.