After a slightly disappointing Christmas weekend where crypto currencies swung pretty wildly from modest increases to massive decreases, it appears that there is some kind of recovery on the horizon – at least in the short term. Bitcoin was trading at well over the $15,000 mark and in some cases approaching the $16,000 point. Still this still is a considerable way away from the highs reached only last week where Bitcoin’s price had approached the $20,000 mark. The launch of Bitcoin Futures appears to have dampened the market but the main reason behind this slump (according to investors) is the taking out of profits for the spending season – not a bad idea in all respects.
Other currencies had mixed results. Ethereum at one point had dropped to the $500 mark which is quite a lot away from its all-time high of around $900 – again this was achieved only last week. However this morning it was trading at the $750-780 mark so it seems that this will be its resistance level with the $900 or even the $1000 mark well in sight if the rally continues. Bitcoin Cash also recovered some of its massive losses when it had dropped from a high of almost $4,000 to lows of below $2,000 and even $1,800. It is currently trading at around $2,800 which is a pretty respectable price in the context of the very recent bloodbath and appears to be close to testing the $3,000 level yet again.
Ripple was practically the only currency that did not see that much of a decline although its price had dropped substantially from a high of $1.20 to a low of $0.75. Still that figure was still three times as much as that achieved only a few weeks ago where the crypto currency had been stuck in the $0.20-0.24 mark. Dash had also seen a considerable drop from highs of $1500 to lows of $600 which dealt a blow to several portfolios. However it is now trading at well over the $1100 mark and looks set to approach the $1500 level again. Litecoin remains another slight disappointment since it was testing the $350 waters for some time but then fell to as low as $230 – an almost 40% decrease. Finally Ethereum Classic also saw steep drops in the past days but is now trading at well over $30 – an indication that it could test the $40 level very soon.
Warnings not to invest during price drops
Although a price drop in certain crypto currencies such as Bitcoin could see potential investors coming in to grab hold of a good deal, some investors have been warning that this could be a strategy doomed to failure. One of these sceptics is Boris Schlossberg from BK Asset Management who said that price volatility makes the proper timing for investing extremely difficult. With the price dropping to $10,400 at one point and a huge sell off occurring, Scholssberg warned that more volatility could be ahead adding that investing in Bitcoin is like attempting to catch a falling knife.
Other emerging crypto currencies such as Monero, IOTA and Cardano experienced considerable surges over the past 48 hours thus indicating that the whole crypto market is well underway to an almost complete recovery. It is also interesting to note that several South Korean exchanges are selling Bitcoin at a considerable premium which in some cases makes the price rise to no less than $18,000.
Investopedia also said that Bitcoin was their term of the year and added that it expected more individual investors to become involved in the market with demand also expected to rise to considerable levels in the new year.