Was The Decline Of Cryptocurrencies (March 2018) The End Of The Bubble?

There was a lot going on in the crypto market this year. From falling down to below $300 billion to rising above $429 billion in market cap, there have been many ups and downs. One of the most daunting periods for cryptocurencies in general was the beginning of 2018. In February and March, Bitcoin fell below $6,000 – but now, it is back on its feet – trading at $9,300.

So, was that decline the end of the so-called bubble that many believed in?

Over time, some people have given up on investing; others have been placing their bets on currencies like Bitcoin and Ripple. In a nutshell, the opinions have been strongly divided.

 

One risk that the cryptocurrencies are at is the risk of being banned globally. Many, however, don’t think this will happen because there is a lot of politics involved. One global jurisdiction is enough to keep a door open for all the users. Also, one part of cryptocurrencies is the blockchain technology which has huge potential to make revolutionary projects for the entire economy.

Also, since the price of Bitcoin dropped again in the past few days, this led to many believing that the bubble has definitely burst. Of course, we’ve seen behavior like this on the market before and we see that other currencies are going down because of the Bitcoin movements. You can see that from the charts. There are a lot of reasons why this drop is happening, but one of the most important reasons is the loss in demand from Asia. South Korea and China almost shut down all of the cryptocurrencies completely.

Not to forget, the price of Bitcoin and others cryptocurrencies, in general, is volatile because the market is volatile as well. Another major issue is that about 40% of Bitcoin is held by 1000 users and practically one-sixth is controlled by a 100 users. This means that if one person sells their Bitcoin, there is a dramatic change in the value.

This, however, doesn’t mean that the cryptocurrencies will cease to exist. They have potential and this year is expected to be the year of the crypto world.