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Crypto Sentiment After Halloween

Crypto market sentiment

November 25, 2020 | 

601 Views | 

JOHN K MWANIKI | 

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The scariest holiday of the year, Halloween, is on, and its effects are big. The crypto community looks forward to Halloween. They believe in Satoshi Nakamoto's ghost. Others also believe that a different crypto sentiment occurs due to the holiday.

This year is no different. The market sentiment over Halloween is scary. Most expect market growth while, at the same time, understand nothing is assured. 

This guide looks into the crypto sentiment over the year. It makes a case for Halloween effects and other factors determining crypto values. It then provides the crypto sentiments post-Halloween.

Understanding the Halloween Effects

Halloween effects are one of the most widespread superstitions among the traders. It is a belief that commodities perform well from the end of October until May every year. The start of the positive market sentiments is ever during the Halloween holidays. These effects involve all commodities; cryptos, stocks, and indices.

The belief is widespread with other names like Halloween strategy/indicator. 

The Halloween effects have been on for years; light-years before cryptocurrencies. Still, as a commodity, cryptos have joined the fold.

It had earlier seemed like digital currencies are immune to the effects. Well, until 2015, when the crypto sentiments started a similar traditional price movement. The cryptos started a bullish run from October 31st ending in May 2016. The coin gained 41% in the process.

The same sentiment occurred the following year. Bitcoin started a market growth in October 2016 until May 2017, with an app reaction of more than 110%. 

The next year was even better for the coin. It started a bull run on October 31st to reach one of the highest $20k in 2018

The crypto sentiment of 2018 was not Bitcoin-specific. All the other cryptocurrencies have massive surges as they performed the best. They would, however, not hold as the crypto boom busted in May.

The Halloween effects are still on. The crypto sentiments remain positive over the Halloween holidays. After having a little slower October, the coin rejuvenated during this period. It has grown to trade some of the highest levels since 2018. This is after it hit the $15k level in market value. 

The growth pattern of the cryptos has become consistent in recent years. This makes it possible to declare a seasonal market movement. Halloween marks the start of a bullish run on the seasonal market movement.

The 2020 crypto sentiment, though, is a little different. There tends to be more at play than just the Halloween effects. This leads to the need to understand factors determining crypto market sentiments.

Other Determinants of Crypto Sentiment in the year

Even though cryptos had been on the rise since March, it had a slow run in October. Most of the coins were on a sideways market run, with a risk of either bullish or bearish market run.

The end of October came with a positive crypto sentiment. The market has gained with Bitcoin over $15k. While some would credit Halloween effects, there is more to the market movements.

Some of the top market movers in this period are;

US elections

The US has held one of the most heated presidential elections ever. The high-octane politics coincides with the Coronavirus pandemic.

There have also been massive prospects and other unprecedented occurrences.  

While the campaign season might have been charged, the post-election period is worse. The incumbent, Donald Trump, has failed to concede elections. This is after the media called the results in favor of Joe Biden. He is citing massive fraud and vote tampering. It is still uncertain what happens when he fails to concede in the end.

Such scenarios create tension in the world economy. The stocks stumble as the market's sentiments become unassured. The effects are already visible, with wall street performing its worst since June. The market fell as most of the giant companies like Google and Facebook shares value drop.

The crypto markets correlate to the stock markets. Bitcoin has gained in the same period as it cements its role as the "digital gold." Its growth affects the whole crypto market, which is now on the rise.

Covid-19 Effects 

The major part of the crypto sentiment within this year is up to Covid-19. Nothing has affected the economy so much in recent times as the Coronavirus.

What started as a mere cold has affected the world, with everything coming to a standstill. The world has had to go into a lockdown, with the economy suffering the most.

The only working entity has been the government through the stimulus packages. The period, though, has been great for the cryptocurrency market. A slow economy tends to mean a weaker fiat currency. The weak fiat let's virtual currencies run the day.

Mainstream Adoption 

The mainstream cryptocurrency use is all the market needs for a breakthrough. The institutional investors have been warming up to the cryptos of late. They are looking at it as a possible alternative to the traditional currency market

To top up the mainstream growth, PayPal has announced crypto access on the platform. With millions using the financial services platform, Bitcoin gains more traction. This has been good on the crypto market as the new markets take shape.

The crypto Sentiment post-Halloween

From the Halloween effect, the future crypto sentiment is nothing to worry about. The cryptos will move the same way it has always done; rise from late October through May the following year.

It, however, comes a little different the sentiment involves the other factors. Not that they will change the market movement. They might push it further.

The political scene in the USA is still gaining momentum. Prospects are likely to be the order of the day. The Coronavirus also seems not to be in a hurry to end. There is not yet a breakthrough in finding a vaccine. It means the world should expect better performance from the coin.

Bottom Line

The Halloween Effects remains active in the crypto world. Like the previous years, the crypto sentiment remains positive. The market has grown the most from the end of October. It is likely to keep at it. 

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