After a day of comparably sized gains, the general cryptocurrency market has been relatively fixed and has not yet yielded their recent gains to the bears. Despite its apparent stability in current price levels, there could be further losses, especially regarding Bitcoin according to some analysts.
Bitcoin is selling up 3% at its current price of $4,340, holding firm after rising from weekly lows of $3,600. Although Bitcoin is trading up approximately 20% from it's recently set 2018 lows, it is still down remarkably from its recent highs of $6,600 in recent weeks.
Recent blogs have been released by cryptocurrency gurus warning investors against getting too excited at the recent pump. Bloggers like Fred Wilson, thinks huge losses could be around the corner. Or could they?
“But for those of us who were investing in tech and tech startups back in 1999–2002, that time will forever be etched in our minds. It was a brutal period during which our belief in the Internet and its potential was sorely tested. Many friends and colleagues left the sector and never returned,” he said.
As it stands, and probably always will, the cryptocurrency markets are exceedingly unpredictable. There is a general consensus that traders should refrain from getting too excited about a long-term trend reversal based on a relatively minor pump that proceeds weeks of consecutive losses.
On the other hand, it might be the most opportune time to buy.
Mati Greenspan, senior market analyst at eToro, explained that the recent price movements in the crypto markets have reignited a long-held debate between investors regarding the importance of market stability over popularity.
“Certainly, it would be better for the use case of cryptocurrencies if they remained more stable, or to see a slow but steady increase in prices. But let’s be straight, would Bitcoin be as popular as it is today if not for the wild volatility? The outrageous bull run of 2017 has been largely responsible for bringing an unprecedented number of new users into the network but it seems that excitement can be generated on the way down as well,” Greenspan quoted.
It remains to be seen whether or not the markets can hold steady at their current price levels, although it is important for investors to consider that the persisting bear market is likely far from over, and further volatility, both upwards and downwards, can be expected.
