The stunning falls of Bitcoin, 2018
A few days ago, Bitcoin price dropped to $ 4,500. While crypto investors are biting their elbows, getting rid of cryptocurrencies, or resolving to hold it until better times, I have decided to remind you what kind of shocks Bitcoin has experienced over the past 13 months.
The main shock for Bitcoin was December 2017, when the price went through the roof, reaching $ 20,000. Experts predicted further growth of the currency to $ 50,000. Such forecasts could be heard until the summer of 2018. But the price went steadily down. It did not happen overnight.
The first serious cryprtocurrency collapse occurred in January 2018, when the exchange rate of Bitcoin fell by almost half. Experts believe that the collapse was influenced by, first of all, the ban on cryptocurrencies and ICOs in China, and then investors were frightened by the news that the South Korean government was going to impose restrictions on cryptocurrency trade. Asia accounted for a significant share of the cryptocurrency market.
It is impossible not to mention the situation with the NEM cryptocurrency, when, after breaking into the Coincheck exchange, hackers stole 526 million tokens, which at that time was worth about $ 400 million. Experts believe that this episode undermined investor confidence in the security of blockchain and the reliability of cryptocurrencies. Another factor affecting the decline of Bitcoin value was the disappointment of investors who had bought the cryptocurrency at the end of 2017 in the hope of its further growth. Actually, this factor, in my opinion, continues to influence the token cost today.
After that, the rate grew a little, until a month later another collapse came.
The second crash of Bitcoin occurred in February 2018 after the ban on crypto and ICO ads on major sites like Facebook and Twitter. Then, the cryptocurrency’s price stopped at almost 9000 dollars.
In April, there was another Bitcoin drop, however, it did not seem something very critical to most. By that time, it had not risen above the $ 9000 mark. By that time, analysts had written about a three-fold fall in the rate since the beginning of 2018 and called the first quarter of 2018 the worst in the history of the “model cryptocurrency”.
Then, in the course of several months, until mid-summer, the price fluctuated at around 6000 dollars. The moods were very controversial. Some talked about the upcoming collapse of Bitcoin, others held it anticipating its future growth, while yet others just passively watched the situation, believing that the exchange rate had finally stabilized.
In the meantime, cryptocurrency laws were being passed all over the world, different states were discussing the possibility of issuing their own cryptocurrency, while large companies continued to explore the possibilities of blockchain. But in general, it must be said that the enthusiasm of the end of 2017 was replaced by a total apathy.
Until the price sharply dropped to $ 4,200 on November, 19. For those who had bought Bitcoin at the beginning of this year, this was a real tragedy. On the Internet, you can find stories of frustrated cryptoinvestors telling how they had sold real estate and invested all their savings into the cryptocurrency at the end of last year and ended up with nothing. Those who bought the cryptocurrency at the beginning of 2017 or earlier obviously feel much better. The Bitcoin rate is still very high compared to the price for which they bought it.
The main reasons that caused the price fall is said to be the uncertainty after the Bitcoin Cash hardfork and the postponement of the Bakkt institutional investor platform.
Despite the pessimism, most experts agree that cryptocurrencies have a future. It is not a coincidence that world governments are so actively interested in them and are passing laws governing their circulation. The interest in the technology has by no means diminished. Which, by the way, is shown by the very same ICO statistics.
2018, despite the Bitcoin troubles, remains the most successful year for ICOs in terms of the volume of funds raised. According to the company Elementus, ICOs attracted 28.4 billion dollars from January to August 2018. This is many times more than in previous years. Experts say that the competition between projects is fairly high on the market and ICOs attract more and more large institutional investors. On the other hand, a lot of projects were closed failing to collect the required amount through an ICO, or even collapsed after its completion and sank into oblivion along with investors’ money due to internal problems.
At the same time, there is a tightening of requirements for ICO participants due to the tightening of regulations of the SEC. In recent months, there has been an interest in security tokens that have the characteristics of capital issues.
Obviously, the cryptocurrency market is still very sensitive and subject to fluctuations caused by changes in holders’ attitudes. And yet, what is happening on the market now does not look like the end of the “tulip fever”.
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