Cryptocurrency: The Trend  

Posted at:/2018-10-05 05:46:12

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Just like it happens in our daily activities, there are trends we follow and maybe yearly or monthly. But one thing is certain that no matter what we do in life, we sure are following trends, be it clothings (We have special clothes for every season), Foods (we know what's right to be eaten for breakfast, lunch and dinner) etc. These are examples of common and known trends.

Cryptocurrency likewise has its own trend that I will maybe call a constant. The total cryptocurrency market cap reached an all-time high of around US$820 billion on January 7, 2018. Then over the next 30 days, we experienced a massive 65% decline in total market cap. The mainstream media declared Bitcoin is dead (again), crypto Twitter went silent, and many new investors lost money selling at the bottom. A regular cryptocurrency enthusiast will tell you that this is the normal trend (The heavy rise and the heavy fall). I have had conversations with cryptocurrency gurus and I have also watched the crypto space closely, the heavy rise and fall is accompanied by some fellow regular trends which I will discuss a few below

This is one of the major trends in the crypto space. The Chinese are very populated and as well have a huge number of investors in the cryptocurrency space. The Chinese new year is an important traditional festival celebrated by the people of chinese which means most of the investors will need to take some of their investments out for the celebration. For example, let's say out of 100% of the total investors across the world, the chinese cover about 40%. If all these investors take out some of their investments for the festival, definitely, there will be a drop in the total market and for the weak hands who don't have the knowledge about this trend will panic and sell off what they have which will eventually cause to the market capitalization. So the trend about this is, during the Chinese New Year (which takes about 15 days, usually between mid January and mid February), the crypto market will be bearish and after the festival, the market will begin to gain back its strength gradually.

Either good or bad news, in crypto space news always have impact on the market. I will be discussing some examples of news drive on bitcoin Prices below:

Mike Hearn Quits Bitcoin (a.k.a The Hearnia) - January 14, 2016
In a public blog post, Mike Hearn declared that Bitcoin had failed and that he will "no longer be taking part in Bitcoin development".  Hearn was an ex-Google developer who had been heavily involved in the Bitcoin community and related projects since the early days of the cryptocurrency.  His most popular project was bitcoinj, a Java implementation of the Bitcoin protocol.

Hearn's post blamed Bitcoin's alleged failure on a number of reasons: censorship in the Bitcoin community, the centralization of mining to a handful of Chinese miners, and the unwillingness of Bitcoin Core developers to increase the limit on Bitcoin's block size.  Within 24 hours of the post being published, Bitcoin's price dropped over $50 USD.
(Bitcoin value: $431.76 Bitcoin value 10 days later: $397.92)

Others in the Bitcoin community accused Hearn of purposely attacking Bitcoin in order to promote his new employer, R3 CEV, a startup focused on using blockchain technology to improve the operations of the global banking industry.

Japan Declares Bitcoin as Legal Tender - April 1, 2017

Japan recognizes bitcoin as a legal method of payment.The country's legislature passed a law, following months of debate, that brought bitcoin exchanges under anti-money laundering/know-your-customer rules, while also categorizing bitcoin as a kind of prepaid payment instrument.

NOTE: Bitcoin value:$1085.03 Bitcoin value 10 days later:$1215.69

From the above examples, you can see the impact of news positively and negatively on the bitcoin prices at some points in time.

Alt season
This is another major trend that everyone in the crypto space look forward to. It is believed to start in the beginning of Q4 as bitcoin starts getting geared for the bull run. Market sentiment is, bitcoin holders this season invest in Alternative coins to take as bigger profits. The more bitcoin price increases, investors take out profit to invest on alt coins which will definitely make the market bullish.

Just like I have said earlier, there are trends in this space that are key to the crypto market either positively or negatively. Let's hear from you; what trend do you know about and how does it affect the crypto space?

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