Deep Crisis or a Perfect Time to Invest? Crypto Market in Late 2018
Cryptocurrencies were already not in their best historical shape by late autumn, however, from November 14 onwards all the major currencies, including its flagship Bitcoin, experienced dramatic downfall. Crypto Enthusiasts around the world are puzzled, and some coin holders don’t even know how to behave right now. This article will examine the current situation, analyse historical perspective and explore the reasons of current fall.
Cryptocurrency market situation
The Bearish trend was dominating this year and the month of November proved to be the worst so far. Bitcoin is trading below $4000 range, while the prices of all other major cryptocurrencies are on a yearly low. Total cryptocurrency market capitalisation (both including and excluding Bitcoin) is also lowest in a year reaching $128 Billion.
Historical perspective
Price corrections are quite common in the crypto world. BTC (Bitcoin) has experienced four major price corrections so far where price decline was around 50–80 per cent in value at times. At the same time, significant currencies like BTC, Ethereum, and Ripple lost more value than some other newer cryptocurrencies like Binance Coin and EOS in 2018.
5 Reasons why crypto is falling now
- Price correction. A phenomenon that occurs systematically but with different frequency.
- Crypto vs Fiat. Many people, some experts argue that wrongfully so, believe that the primary aim of Crypto is to replace Fiat currency.
- Tax season. Crypto investors earned significantly last year, which can mean paying taxes this year. Traders and investors in large numbers were converting their BTC and ETC into fiat for this purpose.
- The ban on Crypto. Social Media was ruthless on crypto this year, Google and Facebook, among others, restricted promotions of cryptocurrencies.
- New regulations. The fear of new rules and the uncertainty in China has a negative effect on the crypto market.
Overall, despite the signs of a small crisis, there is a sense of optimism in the crypto community. To quote Vitalik Buterin of Ethereum — “the relationship between cryptocurrency and legal currency is not competition, but coexistence”. Cryptocurrencies and blockchain technology are continuing to push boundaries, and their end goal never changed: limiting centralisation of current financial systems and structures. When it comes to current issues, it could be just another perfect time to invest.
About Crypterium
CCrypterium is building a mobile app that will turn cryptocurrencies into money that you can spend with the same ease as cash. Shop around the world and pay with your coins and tokens at any NFC terminal, or via scanning the QR codes. Make purchases in online stores, pay your bills, or just send money across borders in seconds, reliably and for a fraction of a penny.
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