Coins Suffer as Investors Take EOY Gains

By Nicolas Abington | Crescent City Capital Market Analyst Intern

As investors have noticed, coins in the crypto market have been bleeding throughout the sector. The crypto market cap has decreased $10 billion over the last week to its current market cap of $180 billion. Some speculators have attributed this to a multitude of reasons, including articles surfacing of doctored daily volumes, attractive gains by the stock market, and investors looking to cash at the end of year gains. 

These decreases in prices have not been significant; however, as the top 50 most popular coins have only taken declines of 9% or less. BTC volatility has stayed relatively constant as well, hovering around 2.63% for the 30-day BTC/USD volatility analysis. The average for these decreases is around 5%, which is a standard shift in the price for assets in the cryptocurrency market. All these statistics are emphasizing that this trend can be attributed to traders taking gains on their investments for tax reasons instead of a persistent decline in crypto investment. 

Even with reassuring statistics on the health of the market, cryptocurrency will be heading into turbulent times as the Bitcoin halving comes closer, regulation continues to be adopted by progressive nations, and as blockchain technology continues to become available to the masses. End of the year selling or not; traders should be aware of the fluctuating shifts in the market and continue to be vigilant when adjusting their trading strategy.