It's a Crypto Crazy Christmas!!
What you should have remembered that was told to you by Billy Ray Valentine.
So, I do not have an inside information, if there is any, about the last two weeks in Crypto pricing.
What I will say is that I am not surprised by the fatigue that the market showed the last two weeks and I expected to see this happen. In my view, the reason is that we had a sharp run-up of price from November into the first half of December. With people
making greater profits than expected. Then there is Christmas coming along with the end of the year with its income tax concerns. That many people sold to use their recently made profit to have a better than expected holidays should not have surprised anyone.
This phenomenon was ever so cleverly explained to us in the classic 1983 movie, "Trading Places". When Billy Ray Valentine explained the reason he waited on Pork Belly prices to the Duke brothers Randolph and Mortimer, William Valentine said, "Ok, Pork Belly
prices have been dropping all morning which means everybody has been sitting in their offices waiting for them to hit rock bottom, so they can buy cheap and go long, so people who own the Pork Belly contracts are going bat Sh*t, their thinking, hey we are
losing all our damn money, Christmas is around the corner and I ain't got no money to buy my son the G.I. Joe with the Kung-fu Grip. OK, and my wife ain't going to make love to me because I have no money, right. So they're sitting there and they panicking
and their screaming, SELL, SELL, SELL, cause they do not want to lose all their money, right. Their out there panicking right now. Now I can feel it, they out there, panicking, look at them."
So how is it similar, well everyone started taking profit before Christmas to buy the G.I. Joe's with the Kung-fu Grip, as Eddie Murphy predicted. That is what just happened the last half of December 2017. Surprised with the price increase and knowing Christmas
was around the corner, people sold Cryptos in order to have a more special and bountiful Holiday.
There is also a segment that has concerns over income and the tax implications which again encouraged selling. Of course, this selling added the downward pressure on the market to reprice lower as we saw. This is mirrored to what we regularly see in the
stock markets when the big traders typically at weeks end will sell and realize their weeks' profits only to start buying again at the start of the week.
I fully expect to see that as we get further along into January that people will continue the pattern of buy and hold strategies that will provide the buoyancy to drive the prices higher on the major cryptos through the first quarter.
Merry Christmas and a Happy New Year! Best of success for 2018...