2023-12-2 17:26 |
Cryptocurrencies have done well this year after they tumbled hard in 2022 amid rising risks in the industry like the collapse of companies like Terra, FTX, and Celsius. They also dropped in 2022 as the Federal Reserve turned extremely hawkish as inflation jumped to a 40-year high.
Santa Claus rally aheadBitcoin, the biggest cryptocurrency in the world, has jumped by more than 130% from its lowest point in 2022. Other smaller cryptocurrencies like Injective, ThorChain (RUNE), Celestia, Solana, and Tron have done better than that.
Newer cryptocurrencies have also thrived. Metacade has jumped to a record high, giving it a market cap of over $26 million. EverLodge, a new platform seeing to disrupt the vacation rental industry is also doing well. This is a sign that investors still value digital currencies despite the elevated risks in the industry.
Looking ahead, this trend will likely continue in the coming days as a Santa Claus rally continues. A Santa Claus rally is a situation where financial assets jump sharply ahead Christmas.
There are two main reasons why this Santa rally will continue. First, the upcoming inflation numbers will likely show that prices continued falling in November. The most recent data revealed that the headline Consumer Price Index (CPI) dropped to 3.2% in November from the previous 3.7%.
The price of crude oil has been a bit stable recently. Brent and West Texas Intermediate (WTI) oil prices have stabilized at $80 and $76 while gasoline prices have remained at $3.2. Ocean shipping costs have also dropped, as I wrote in my recent article on ZIM Integrated.
Therefore, there is a likelihood that the Federal Reserve will point to a rate cut in the first or second half of 2024, as shown below. Some Wall Street watchers like Bill Ackman believes that the Fed will cut in Q1’24.
JUST IN: Futures are now showing a ~45% chance that rate cuts begin as soon as March 2024.
There's also a growing (but small) chance that rate cuts begin in January 2024, at 4%.
Prior to the most recent CPI inflation data, the base case showed rate cuts beginning in June 2024.… pic.twitter.com/zB53Ak9eVM
Second, there are hopes that the Securities and Exchange Commission (SEC) will approve a Bitcoin ETF either in December or in Q1’24. That move will lead to more crypto inflows. Indeed, the discount to NAV of Grayscale Bitcoin Trust has narrowed while inflows in BITO ETF has jumped to a record high.
EverLodge is seeing tractionMeanwhile, EverLodge, which you can read more about here, is doing well as more people embrace the network. Data in its website shows that investors have bought over 19.9 million ELDG tokens in the past few weeks.
For starters, EverLodge is a company that seeks to disrupt the real estate industry using the blockchain technology. Its goal is to change the way people buy rental properties and vacation homes.
The strategy behind this approach is simple. Instead of buying a whole property alone, users can participate in fractional ownership of holiday homes. The benefit of this is that anyone can own a property without visiting it. By leveraging the transparency of the blockchain technology, EverLodge will ensure that the process runs smoothly. The whole process will be powered by the ELDG token, which is an Ethereum token with a presale supply of 532 million. Its initial price started at $0.01 and is expected to get to $0.038 at its launch stage. You can read more about EverLodge token here.
The post Crypto gets ready for the Santa Claus rally as EverLodge spikes appeared first on Invezz
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