Digital currencies experienced significant volatility in December, with many cryptocurrencies suffering notable declines and then enjoying even more impressive recoveries. When explaining these price movements, analysts pointed to variables including technical support, sentiment and a year-end rally caused by traders closing out short positions.

November was a rough month for cryptocurrencies, as the bear market – which has lasted for most of this year – continued. However, some analysts are calling a bottom, CryptoGlobe dissects the bearish month to see if there is respite ahead for the top cryptoassets.

Several major cryptocurrencies suffered losses during the month, and the broader digital currency market lost value. However, these declines were modest compared to those of several other periods. The broader market trend could last another 12-18 months, predicted Arthur Hayes, co-founder and CEO of Seychelles-based cryptocurrency exchange BitMEX, told Yahoo Finance UK.

Cryptocurrency markets followed a distinct pattern in August, declining during the first half and then recovering before closing with a bang. These broader movements coincided with a handful of notable developments. New York Stock Exchange, announced plans to create a regulated, global exchange for digital assets called Bakkt, the SEC rejected nine Bitcoin ETF proposals and Goldman Sachs changed their stance on cryptocurrencies.

Cryptocurrencies bounced back in July, experiencing notable gains during the first several weeks, seemingly breaking free from the downward trend they had been enduring for months.

Cryptocurrencies fell in value over the last month even as markets received news that would generally be considered positive, for example statements made by U.S. Securities and Exchange Commission (SEC) officials that the government agency did not consider bitcoin or ether securities. Other  technological developments are thought to be bullish for many cryptoassets in the top 10.

Crypto markets were driven largely by sentiment in May, resulting in sharp gains during the start of the month and a robust decline over the coming weeks. 

Cryptocurrency markets rallied in April, gaining value as they benefited from several tailwinds including stronger sentiment and declining regulatory concerns.