Bitcoin: To the Moon and Back!
December 14, 2018 6:45 am,
2018 is about to go down in history as the worst year ever for Bitcoin as well as for the cryptocurrency market as a whole. The performance is horrible, but BTC is actually doing better than other cryptos. With a rapidly shrinking market cap and 30-day annualized volatility back over 100%, there is only one question to ask, if there is any hope left?! Its current price of $3400, is around 83% decline from the peak price of $19,891. During the past 7 years, there as only one year in which BTC lost value 2014 when the price dropped 58%.
In December 2017, the price of BTC was approaching $20,000 after months of miraculous growth had pushed its price by more than 2000 percent since the start of the year. There seemed no end in sight to the cryptocurrency being hailed as the future of money as newly minted early adopters encouraged newcomers to invest in the digital gold rush.
With a dump of around 87%, crypto markets are on the floor showing no signs of recovery. Many industry observers have predicted the further loss. Studies predict that the cryptocurrency accounts claiming this figure has jumped from 85 million in 2017 to 139 million this year. The signs are positive for an eventual market recovery as increased users will lead to greater adoption which in turn will boost digital token prices.
2018 will go down in history as one of the most difficult periods of bearishness for the cryptocurrency markets. Though 2017 closed with a high record high at the price of Bitcoin and ushered in a new era of expansion in the altcoin markets, 2018 has been marked with a steady decrease followed by an unprecedented free fall in the price of nearly every cryptocurrency in the expanding markets.
But 12 months later, the miracle has transformed into a bleak midwinter for BTC. A series of swift price crash in late December and early January, followed by months of steady decline, has left BTC trading at just $3450 – its lowest value since August 2017.
The virtual currency BTC dropped to around $3280 before creeping up to around $3550 per coin. This led to other major cryptocurrencies and low market cap digital assets to fall by around 15 to 20 percent against the US dollar.
The bear market has seen some surprising shifts in position as well as prices on cryptocurrency charts. Popular currencies like BTC and XRP have all faced the brunt of the bear, leading many analysts to speculate the bottom and the end of the bear run.
The recent forecasts from market analysts predict more losses at least in the near future, with some pointing to BTC’s previous patterns. Since its inception in 2019, BTC has experienced 5 major corrections with an average drop in the value of 85%. In order to realize this same percentage drop, BTC would need to fall below $3000. While this seems entirely possible given the direction BTC is currently heading, what is less certain is where BTC goes from there. One acclaimed financial analyst is, therefore, calling this a “crunch time” for cryptocurrencies.
Many BTC advocates believe the amount of high profile investors, a market cap that is still above $60 billion, and an entire industry trailing in its wake means BTC is simply too big to fail.