WHY DO CRYPTOCURRENCIES PLUMMET DURING CHRISTMAS?
December 26, 2018
Cryptocurrencies were all set to win this decade, however the biggest festival celebrated all around the world, 'Christmas' could be the worst time of the year for the crypto market.
Let's be real.
Christmas is the most awaited festival and undoubtedly, the best time of the year. As for the crypto market, cryptocurrencies have maintained a top spot as one of the hottest trends of the 20th century, gripping the attention of investors considerably and being in news time after time for its brilliant discoveries every day.
The crypto market has been through a lot and cryptocurrencies have faced their own hardships where the crypto value graphs constantly fluctuate and some days hit an all time low. Since 2013, cryptocurrencies were doing favourably well for themselves and the crypto market was cleaning up nice, almost at par with traditional currencies.
2017 - The Year of Bitcoin: The "Most In" topic of 2017, Bitcoin stunned the world when it hit a mouth-watering $20,000 sending investors into a frenzy and Cryptocurrency Exchanges to take place at the speed of light.
However, after winter had finally set and Christmas was just around the corner, cryptocurrencies observed a staggering fall in numbers and dropped to as low as $12,500, a drastic 40%, making the other cryptocurrencies to follow suit and face the hard hit as well. Cryptocurrencies like Bitcoin and Ethereum which once promised bright futures for crypto-inquisitive investors and traders were now gasping for a miracle amidst the pandemonium.
Christmas continued surprising people who were invested in the crypto market, glued to the crypto news playing in the living room more than the people collected around the Christmas feast. Every now and then the holiday season saw crypto fluctuations; raising the value bar a bit, falling back and rising back again. Since the inception of the first cryptocurrency, Bitcoin and the commencement of other cryptocurrencies, the season of Christmas has been unlucky every year again and again.
"Some days are just hard but there is hope in tomorrow." - The cryptocurrency industry seems to adhere to this rule however and even now the market is still fresh, not looking to give up any time soon and maybe only time will tell what crypto has in store for itself.
The day will soon come when crypto might become an even bigger thing than it is and the Christmas season will shine its light on cryptocurrencies as well.
The fall cannot be prevented entirely. However, we can still understand the reasons which may help us take some preventive measures in the future. So why does Christmas bring about turmoil for cryptocurrencies? Here are some possible reasons.
Christmas is expensive
As funny as this may seem, Christmas is as expensive as it can get and since the holiday season is celebrated all around the world, there's a lot of expenditures that are involved for a good time. To top it all, major festivals like Hanukkah, Kwanza and New Year's fall in the same month as Christmas making people rush to withdraw money by heaps more than wishing to invest it.
As amazing as cryptocurrencies are they barely serve any purpose to a person for daily transactions and withdrawals, blockchain technology is in reality more beneficial for investments.
Cryptocurrencies are exchanged for fiat cash
Christmas is that time when people scourge their wallets to get their hands on some cash which will help them get in the holiday spirit. Some may not have enough cash on hand to splurge and this leads them to believe that making a quick buck is palpable with some easy Online Cryptocurrency Exchanges for fiat money.
Cited as a major reason for the crypto market's mammoth loss, people opt to make faster money rather than some cryptocurrency investment. We don't blame them as currently Bitcoins and cryptocurrencies are not that advanced that they can be used for regular purposes such as paying for what someone has shopped or to be carried along when they go for a quick hot chocolate run to their favourite cafe. Here, traditional fiat currency takes the crown.
Cryptocurrencies are unpredictable and so are their developments. We can only wait patiently till the time when cryptocurrencies bounce back on their feet during Christmas.