Bitcoin and the crypto currency sector have struggled over the past year, fighting against market conditions that are being referred to as the crypto winter, for its debilitating effects on the booming sector. The bitcoin price has dropped more than 80% in value and some $ 400 billion has been written off the crypto currency market in the past 12 months, as adoption markets and banks set up tightly monitored plans to engage in crypto-currencies blocked. Matt Hougan, Global Head of Research at the creator of the world’s leading provider of crypto currency index funds, Bitwise Asset Management, warned that the bitcoin bubble has burst and that close to 95% of all the existing 2,000 crypto currencies will experience painful demises.
Crypto Prices Plunging
The price of bitcoin has been falling for 13 months, after peaking at nearly $ 20,000 per bitcoin in December 2017. The price of bitcoin has been steadily declining since it reached an all-time high of nearly $ 20,000 in December 2017, forcing many bitcoin, crypto currency and block chain startups to reduce or shut down their jobs altogether, making desperate investors think about the signals of how the market will evolve next. Bitcoin and crypto currency fever have conquered the world in 2017, with some major pieces including the Ripple XRP, the Ethereum and the Litecoin, whose percentage of price increases far exceeded those of Bitcoin.
Mixed Signs for Cryptos
The lightning epic of Bitcoin in 2017 has been largely corrected by expectations for institutional investors and the support of big banks for Bitcoin is expected to arrive soon. As 2018 dragged on and this investment failed, many investors and traders were cold-blooded, bailing out their positions in bitcoins and crypto currency. The price of bitcoin rose from less than $ 1,000 a bitcoin in early 2017 but has since fallen back to about $ 3,400. This is not bad news for Bitcoin and the cryptography industry.
However, it has been predicted that the recent rise and fall of the bitcoin sector was reminiscent of the Internet bubble of the early 2000s and compared it to that of Internet giants such as Facebook, Amazon, and Microsoft. Many think it’s going to merge important things, like that of the dotcom era – Amazon, Google, Facebook. There has also been a surge in the hiring of bitcoins and crypto currencies in the financial sector, last year.
The Internet has attracted a lot of talent, it has mobilized considerable capital and it has been very painful for the investors. The people who jumped blindly while they were already using aggressively and very volatile assets have also encouraged bad behavioral reactions and bad activities, but it has brought a lot of capital and interest to the development of the ecosystem. The dot-com bubble experienced a rapid rise in US equity valuations fueled by investments in unprofitable internet companies with the technology-dominated NASDAQ index rising from under 1,000 to more than 5,000 between 1995 and 2000.
The fall in the price of bitcoins has led to the broader market, with many large digital tokens having lost most of their value in the past 12 months. The latest data is mounting pressure on bitcoin and cryptocurrency traders after last month’s figures showed that bitcoin had entered a new sales trend for the first time since mid-November. Hougan’s comments echo other Bitcoin loyalists, including Twitter CEO Jack Dorsey, who remains indifferent to the steady decline in bitcoin prices. Last week, Dorsey reiterated his hope that Bitcoin would become huge. At the same time, Hougan also emphasized the affinity of younger generations for bitcoin and crypto-currencies, suggesting that millennials (those born between the early 1980s and the late 1990s) consider bitcoin as digital gold. All in all, there is a considerable amount of optimism and pessimism on whether the Bitcoin bubble will reappear soon, considering all the contradictory signs.