Bitcoin and Ethereum Outpaced Wall Street After New Year’s Day

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Bitcoin and Ethereum Outpaced Wall Street After New Year’s Day

Bitcoin and Ethereum Outpaced Wall Street After New Year's DayAfter a disastrous trading month in December, Wall Street investors attempted to stage a comeback on the first trading day of the New Year, but they fell short of expectations. Bitcoin and Ethereum, on the other hand, fared much better and seemed poised to regain at least some of the considerable ground lost in 2018. For the most part, BTC and ETH traded sideways on low volumes after Christmas and through New Year’s Eve, but January 2 brought finally brought cheer to the cryptocurrency markets.

Cryptocurrencies Unaffected by Wall Street Losses

While the tech-heavy Nasdaq lost more than 2 percent after New Year’s Day, Bitcoin broke through the $4,000 exchange price with a daily gain of 2.5 percent. As for Ethereum, the exchange price posted an increase greater than 10 percent on the same day. It should be noted that Bitcoin futures on the Chicago Mercantile and Board Options Exchange were mostly positive at the same time Wall Street futures pointed downward.

Fundamentals were brutal for Wall Street as 2019 trading began. There are multiple concerns for January: the powerful Chinese manufacturing industry showed signs of cooling down amidst diminished demand, the United States government remained partially shutdown with a stubborn President Trump unwilling to compromise a solution for border wall funding, the Special Counsel investigation continues to loom high over the White House, and global markets seem to be slowing down.

Trends for the Stability of Cryptocurrency Market & Stock Market

The cryptocurrency markets have not enjoyed positive fundamental news aside from an article published by the MIT Technology Review on January 2, in which researchers believe that blockchain projects will be very active in 2019. The article mentions Fidelity Investments’ commitment to making Bitcoin and other digital currencies portfolio products; moreover, the expected arrival of a Bitcoin futures contract on the New York Stock Exchange was also noted by MIT researchers. It should be noted that the NYSE futures contract, unlike competing securities in Chicago, would be settled in Bitcoin instead of U.S. dollars, which means that it will be of interest to serious investors.

Another interesting development in the digital currency markets is that Ethereum has regained its number two spot on the market capitalization ranking, thus unseating Ripple and gaining nearly 80 percent during most of December 2018. This market action can be explained by the upcoming fork of Ether, the main Ethereum token, which will result in another currency token running on the same blockchain. There is still no indication that Ether will achieve mainstream circulation as a currency, but traders are paying attention to the fork.

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