Disclaimer: This is just rampant speculation. I own crypto.
A thought struck me today as the crypto market has been fairly quiet the last few days compared to the mayhem a week ago. Many crypto currencies like Litecoin and Ethereum were up 50-100% last week, only to trim gains this week. CBOE Bitcoin futures didn’t appear to have much impact on price at all in the first week of trading either. In hindsight its clear to see that the market needed to cool, but I have a feeling that the “cooling” might be over for a bit.
I dont think that price is down because demand is down. I suspect what we saw was the first “wave” of another to come. Why is it “to come” and not “here”? People can’t get in fast enough. Exchanges are overwhelmed with new signups.
Bittrex shut off applications for new users because of demand.
We have turned off user registration for a DB upgrade due to a large spike in new user sign ups.
— Bittrex (@BittrexExchange) December 14, 2017
People tell me they can’t get their accounts open pretty much anywhere. Amazing, if true.
All these people are coming online, desperate to make gains. Should a little rally spark FOMO will kick in and we could see a big move in the market.