Crypto Market Posts $17 Billion in Gains After Massive Drops Between November and December
The cryptocurrency market seemed to have recovered from the hard days they had during November and December.
Back in November, Bitcoin (BTC) was traded above $6,300 and the whole crypto market capitalization was close to $220 billion. A few days ago, the whole market cap of the market was under $105 billion and Bitcoin was traded near $3,200. That represents almost a 50% reduction in just a month.
Now, most of the virtual currencies in the market are operating positively in the last 24 hours. Some assets such as Bitcoin Cash (BCH) have grown almost 40% in just a day. While others like EOS grew 1.26% during the same period of time.
One of the reasons why the market is operating positively could be related to the fact that Tether (USDT) appears to be fully collateralized. Bloomberg reported on December 18 that sources with knowledge on the matter showed that Tether had the necessary US Dollars to back all USDT in circulation.
Tether has been involved in different controversies throughout the current year. Thus, having a report that shows that the company had the necessary funds to back the whole USDT issued. Tether was accused of manipulating Bitcoin prices and not making a credible audit on its funds.
According to Mati Greenspan, a senior markets analyst at eToro, the rally could be related to traders closing short positions.
About it, Greenspan commented:
“The recent crypto rally can only be explained as a short covering rally. People are looking to reduce their exposure and closing out high-risk sell positions before the holidays. Closing a short sell position creates upward pressure on prices. Evidence: BCH is up the most.”
At the time of writing, Bitcoin is registering an increase of 6.46% in the last 24 hours. Each Bitcoin has a price of $3,788 and it has a market cap of $66.04 billion. XRP and Ethereum (ETH) are also growing almost 10% each.