Bitcoin witnessed a near miraculous spike in value on January 6th jumping 5% in a matter of minutes. Since the jump Bitcoin has remained able to maintain its spike in value over the past 24 hours.
Bitcoins spike in value also caused the majority of all other crypto assets to experience a rise in value. Gains for most altcoins have remained in the 1% to 10% area with minimal losses.
The sudden spike added a whopping $7 billion into the market bring the market cap up to $136 billion. The sudden rally has yet to convince many analysts that a long term rally is in sight as the market cap would need to recover an additional $60 billion to near early November 2018 ranges.
Since the market crash of November 2018 the market has been able to maintain a valuation between $100 and $140 billion dollars. Many analysts believe that if the market was able to recover to $180 billion it could result in a mid-term rally. The market remains vulnerable to further drops even if it crosses the $200 billion barrier due to catalysts that will be presenting themselves in early 2019.
What to Expect in Q1 2019
The first quarter of 2019 promises to present itself as a roller coaster ride for investors as many new crypto related catalysts will be launching. Bakkt, Nasdaq’s Bitcoin futures market, and the SEC’s ETF report are all scheduled to be released in the next two months. Each of this major implementations (or lack of) holds the potential to have a severe impact on the market.
For the market to become rife with bulls once again the market will need to reach its early November levels once again. Early November held an average of $230 billion in market cap and a $6,000 valuation for Bitcoin. If one of the first quarters releases spikes the market up to these levels, a full trend reversal can potentially be assumed.
It’s also important not to forget that many altcoins will be undergoing fundamental changes in the coming months that could have significant impact on the market. Most notably so would Ethereum. Ethereum’s Constantinople hard fork is coming in the foreseeable future and we all remember what happened last time a crypto asset hard forked.