Crypto adds $31 billion in a matter of days; Is this really a Santa Claus rally?

20 Dec, 2018 | Updated: 20 Dec, 2018
by Will Heasman
Price Action
Crypto adds $31 billion in a matter of days; Is this really a Santa Claus rally?

Waves, Stratis and Bitcoin Cash have all seen huge momentum over the past few days gaining upwards of 30% apiece, in fact, the entire crypto market has seen an undeniable upswing, which has seen the industry’s total market cap boosted by $31 billion. So what's going on?

Right now crypto has entered something known in the financial world as a “Santa Claus rally” (doesn't that just make you feel all jolly!?)

Traditionally in the stock market asset prices tend to rise around December. Although this has been observed time and time again. No one really can explain this phenomenon besides pitting down to the holly jolly season. 

Mati Greenspan, market analyst for eToro spoke to the independent about the sudden surge:

“The rise in cryptoasset value in the last 24 hours has many questioning if the market is experiencing a Santa Rally. The truth is crypto as a concept is still relatively new and we don’t have enough data yet to show if this is a typical December trend,”.

Indeed, the market is still in its infancy but if recent history is anything to go by, this rally could lead to something bigger.

Greenspan added that even if this doesn’t lead to the type of prices displayed this time last year it still indicates a move in the right direction:

“What we do know is that the price increase is a strong push off the floor for the market. This type of movement is encouraging and may just end up creating a bottom for this battered market and possibly even a bullish trend into 2019.”

While the entire market (more or less) is showing green across the board, there is some crypto's standing out head and shoulders among the rest.

Waves, is currently one of those, propelling in recent days to gain more than 30%...

 This seems to be directly connected to their recent funding round which saw them raise 120 million for the development of a private blockchain:

on top of this, the project has also partnered with the Switzerland-based Tokenisation Standards Association (TSA) to help assess new tokenization projects entering the Waves platform. 

Stratis (STRAT) is another such project gaining 34% in the past 24 hours, sitting at a current price of $1.45.  

This price action seems to be connected to a series of upcoming “releases”:

Bitcoin Cash hs always displayed monumental movement, gaining almost 40% in 24 hours leaving its rival Satoshi’s vision (BCHSV) in its wake. 

BCH is currently in fourth position. This is in stark contrast to last week when Litecoin managed to overtake BCH, in what was dubbed “the flappening”:

Exciting times… Let's hope this Santa Claus rally continues. Keep tuned to Chepicap for more!

Read more: LTC vs BCH The flappening has happened as Charlie Lee predictedWaves up 30%, raises $120m for new blockchain and partners with BetterTokensMarket rebound slows, though many coins still showing green today

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