2018 was one of the most forgettable years for crypto enthusiasts and investors alike. The year marked the beginning of longest crypto winter which lasted well over 6-months. The bearish trends were so strong that the majority of the cryptocurrencies lost in upwards of 80% of its total market capitalization.
The losses were more significant since a majority of the investors jumped into the crypto game looking at the price peak of late 2017. 2017 price rise of cryptocurrencies made many Bitcoin bulls to make absurd price predictions claiming that the prices would double and triple in coming days, and a few went on to even claim that $1 million price valuation for a single Bitcoin is not a far fetched dream.
However, as the bearish trend grew stronger in the last couple of quarters all those predictions came crashing down. People started to bail out when they realized the market won’t stop bleeding. Even at the start of 2019, the market was struggling to maintain or fortify any small gains.
At the moment the market has finally started to see an upward movement starting from late April 1st or early April 2nd, where most of the altcoins broke their upper resistance levels and people are hoping that the impending bull run finally takes charge.
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Crypto Markets Today vs An Year Ago
If we compare the prices of cryptocurrencies today with the prices a year ago, definitely the valuation was larger, but we must take public sentiment and how the markets have changed over the year.
2018 bearish markets were definitely a nightmare for the investors, but it did a lot of good for adoption and stability. While most of the traditional player had only one argument against the Bitcoin and other altcoins that these tokens are not worth the investment risk since they are very volatile. However, the prolonged winter changed that sentiment and many traditional investors from wall street and financial institutions started availing crypto services.
The longest crypto winter is on the verge of its end as the cryptocurrencies have finally made some progress. Bitcoin Cash has seen a phenomenal rise overnight gaining 44% overnight.
So, when we compare the markets one year apart we need to take various factors into consideration like what was the market sentiment, what was the key resistance point and what people were expecting from the market? In the present situation, the crypto trade market is bullish and hoping that the prices would touch new highs.
While when we look at the market a year ago, people were only hoping for some stability and were expecting that the prices won’t go down any further. Thus, the market today is overall much stronger than it was a year ago.
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Present Market is Bullish
With the next bull run just around the corner, people have started to make predictions again, but this time they are more careful and predicting reasonable gains rather than optimistic ones. However, there are still few who are standing by their stance quoting absurd prices, while quite a few believe that the Bitcoin prices would go so high that it would become impossible for younger generations to ever own a complete Bitcoin.
Cryptocurrency markets have gained stability and cut down the volatility factor significantly during the last bear run. This has opened many new gates for much wider adoption and use. During the bearish phase, the focus shifted from the price towards the refinement and adoption.
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The price fluctuation of crypto tokens are inevitable given the technology is new and it’s under the refinement process, where the developers are still figuring out the best consensus and protocol to suit the needs of the majority. Once the cryptocurrencies become a daily driver of use and the developers are able to keep the network stable, the markets would saturate as well.
As of now, after 2018’s bearish market trends, the market is gearing up for the next bull run and people are expecting the prices to go further up than 2017’s peak price.
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