Cryptocurrencies Decline on Christmas Eve: Bitcoin, Ethereum, Ripple Down 10%

On Christmas Eve, December 24, the price of
leading cryptocurrencies fell by large margins.
Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin,
along with every other cryptocurrency in the
market with the exception of a few have declined
substantially in value.
Out of the 10 most valuable cryptocurrencies in
the market, Bitcoin Cash and Ripple have
recorded the largest losses, falling by 18 percent
and 17 percent respectively. The two
cryptocurrencies have also surged in value earlier
this week, resulting in a bigger correction than
other cryptocurrencies in the market.
Bitcoin, Ethereum, and Litecoin recorded a price
correction of over 10 percent, as the price of
bitcoin fell below $14,000.
Why Did a Correction Occur?
Historically, the market valuation of
cryptocurrencies had surged during holiday
seasons, especially throughout Christmas and
new year’s. Analysts have attributed to the
tendency of cryptocurrencies like bitcoin rising
during holiday seasons to the introduction of new
family members and friends to the
cryptocurrency market.
As bitcoin and cryptocurrencies become hot
topics, more individual and casual investors
engage in bitcoin and cryptocurrency trading.
On December 23, prior to Christmas Eve, the
cryptocurrency market recovered from a major
correction, which led to the price decline of
every single cryptocurrency in the market.
Bitcoin fell by around 25 percent, while others
fell by nearly 50 percent.
After a speedy recovery, on December 24, the
cryptocurrency market recorded another
correction, which was unforeseen by most
analysts and experts. Highly regarded and
respected investors including billionaire hedge
fund legend Mike Novogratz stated that with the
recent recovery, the price of bitcoin will likely
initiate a new rally and surge in price in the
short-term. However, the cryptocurrency market
recorded another major correction prior to
Christmas.
For newcomers, the latest cryptocurrency
correction could be a crucial opportunity to
understand the nature of the cryptocurrency
market and risks involved in trading. Every
market is affected by a bear cycle after a bull
run, as Litecoin creator and former Coinbase
executive Charlie Lee had explained.
This year, the cryptocurrency market has
surpassed the expectation of even some of the
most optimistic, enthusiastic, and long-time
entrepreneurs, analysts, and investors. In April
2017, ShapeShift CEO Erik Voorhees predicted
the market valuation of cryptocurrencies to
surpass $300 billion in 4 years.
In April 2017, ShapeShift CEO Erik Voorhees
predicted market cap of cryptocurrencies to
surpass $300 billion in 4 years (2021).
7 months later the market cap of #bitcoin
alone is over $300 billion and cryptocurrency
market cap is nearing $600 billion. 🚀
https://t.co/rvHl9TVWiz
— Joseph Young (@iamjosephyoung)
December 18, 2017
By December, bitcoin alone had already achieved
a $300 billion market cap and the combined
market valuation of cryptocurrencies surpassed $
600 billion.
Correction is Necessary
Major price corrections prevent short-term
bubbles from occuring. The price trend of bitcoin
and other cryptocurrencies in the market is
optimistic because it always has managed to
recover from major corrections, supported by
rising demand from investors and large volumes.
On December 11, Lee wrote:
“Every crypto bull run I’ve seen has been
followed by a bear cycle. The market needs
time to consolidate. That’s just my experience
from 7 years of watching this space. How low
and how long it will be is TBD. People need to
be aware of this possibility and invest
responsibly.”
Currently, the cryptocurrency market is seeing a
correction of the three-month bull run bitcoin
and the cryptocurrency market have
demonstrated.
By December, bitcoin alone had already achieved
a $300 billion market cap and the combined
market valuation of cryptocurrencies surpassed $
600 billion.