Binance Research: January Effect Also Evident in Crypto in 2020
This month’s focus is on the calendar-related phenomenon called “January Effect,” or the rise of prices in traditional stock and equity markets during the first month of the year. This effect is apparently also reflected this year in the crypto markets, with the total cryptoasset market cap rising from $193 billion to $255 billion. Altcoins drove much of the growth with a 40%+ increase in market cap value during the past month.
Mid-cap cryptoassets DASH and ZCoin exhibited respective monthly price increases of 181.5% and 179.7%, the best performance among assets listed on Binance.
“Bitcoin trading dominance broke below the 40% mark in January (38.17%), a symbolic decrease (-2.31%) from December. Meanwhile, the Bitcoin market dominance decreased from ~ 68% to ~ 65%,” Binance Research noted about Bitcoin’s performance in comparison with the rest of the cryptoasset market.
Binance Trading, one of the world’s most liquid OTC desks for cryptocurrencies and digital assets, assisted in the creation of this report and affirmed the findings about altcoins’ performance this month.
“The beginning of the month saw a high number of buy flows for mid to low cap alts, definitely at a higher rate than what the desk sees typically,” Binance Trading said, adding, “This has all increased the anticipation of a potential alt-season, or at least a mini alt-season, giving many traders hope for the first time in months.”