To say that the market of crypto-currencies does not have the form in this month of January 2018, is an understatement. He is still struggling to recover from the correction initiated by the 15. In a previous article, I highlighted that the month of January is historically bad for the crypto-currency. But, in addition to this seasonal factor, other elements have amplified this historical trend negative.
1. Seasonal factor correction
Even if the corrections of January on the reference Bitcoin have varied according to years and that the recovery has taken more or less time to initiate, BTC has always finished by register solid gains during the following month, i.e. February. There is one exception : 2014. But if you were already active on this market at the time, you remember that this corresponds to the disastrous 17 February 2014, when Mt Gox stopped withdrawals and then disappear in flouant many investors.
Since then, the history repeats itself : in January Bitcoin corrects dry, he straightened up vigorously in February and then continue its rise during the rest of the year. That said, there will be, sooner or later, the exception that confirms the rule. But, for the moment, not enough to panic. In addition to the tax returns, another factor that could explain this weakness of the market in January is the chinese new year, a period that coincides with steady sales on the markets of crypto-currency by asian investors.
2. The statements of the officials of koreans and their interpretation in the media
As if the seasonal factor wasn’t enough, the Korean authorities have decided in this month of January 2018 to put the order on their market of crypto-currencies. In itself, it is rather positive. By contrast, markets have been severely shaken by the contradictory statements of different ministries in korea. While the justice wished to ban stock exchanges, economics, warned against.
Pixabay – Geralt
And when the communication was clear, these are the media that relayed incorrectly (by incompetence or a desire to harm, everyone will be his opinion). For example, the prohibition of trading in anonymous became, in some sections, the prohibition of trading of any short. A survey was also held in South Korea amid charges of insider trading. However, this cleaning has negative consequences for the Chinese who had found refuge on the platforms Korean.
3. The freeze of registration of new users in December on major platforms
If you have tried to enter the market in December, you’ve probably noticed that it was very difficult to register on the platforms, crypto-currencies are the most popular. So it was nearly impossible to start considering that even when you manage to get an account they had to wait for the validation of the identification procedure that often takes weeks. Only the small platforms 100 % cryptos were open to the new. Which was not really useful as they first had to convert euros into Bitcoin or Ethereum to start their shopping.
Since then, registrations have resumed, but the problem of the slowness of the validation of documents used to verify your identity is still present. The correction has probably cooled a lot of individuals who were influenced in this market. It must therefore wait for a improvement for these people to decide to take the plunge.
As each correction, the media is talking about it as if it were the last. Besides the fact that this has already happened a countless number of times, there are objective factors that tend to prove that it is transient. In addition, it must not be forgotten that the complex has experienced a month of December exceptional and that a correction was due. In November, the whole world hoped to see Bitcoin at $ 10,000 for the end of the year 2017. At this time, despite the ” depressed “, BTC is trading at over 11 300 $.