Bitcoin users have an inherently optimistic thought easily observed in their popular jargon such as BUIDL and HODL. The 2018 features some of the most terrible events in the industry with prices generally crushed. Despite the price drop, the Bitcoin enthusiast is optimistic that better days are ahead. Here we shall review if 2019 will be better than 2018 to Bitcoin enthusiasts.
Will 2019 Be A Better Year For Bitcoin?
This year, the biggest question echoing from Bitcoin users is whether the price decline will stabilize. Some investors are hopeful current events indicate that things will be good in the near future. Although the crypto market is prone to rampant price movements, turbulence in the range of 80% is inevitable. It’s now six months since crypto markets feature a grown and about a year its reach its peak.
The Bitcoin market is continually slumming with a combination of a market correction, shifting sentiments and external factors affecting prices. This negative trend affects all digital currencies tethered or independent of Bitcoin. However, the maximum impact is on Bitcoin, the first and most popular digital currency.
The Onset Of The Bitcoin Price Tragedy
When Bitcoin price toughed almost $20,000, many enthusiasts became exciting hoping the price would increase further. Most notably, crypto-bull hardcore Mike Novogratz predicted that Bitcoin value would increase further. He once predicted that bitcoin would exceed $40,000 by the end of 2018. However, Novogratz now predicts that bitcoin will exceed $9,000 this year, a significant shift from his earlier Bitcoin predictions.
Initially, Bitcoin price settled around $6,500 throughout the spring before dropping below $4,000 for the first time in a year. At the moment Bitcoin price hovers closely around $3,400. Additionally promising upcoming Bitcoin projects expected to raise the currency status is yet to fruition. Most notably, the highly anticipated Bitcoin ETF which never materialized to date. Furthermore, it’s unclear when regulatory approval for the Bitcoin ETF will come through.
Meanwhile, Hundreds of financial institutions are reconsidering their plans for a crypto-related product. Unfortunately, this is a negative sign that the previously enthusiasm for Bitcoin is regressing. Cryptocurrency critics say the existing financial services technology is efficient enough, referring to Bitcoin and Blockchain a wasteful technology.
Causes Of The Downturn
Bitcoin and other cryptocurrencies face a wave of factors affecting its price. Generally, the market downturn affects most investment vehicles. The pressure isn’t only on Bitcoin, the stock market experiences erratic drops after more than a decade of stabilization. The drops in stocks in November and December alone erased all gains for the entire 2018.
However, cryptocurrencies experience several rounds of negative pressures than the already established stocks market. Cryptocurrency experiences some negative publicity like the participation of the celebrities Floyd Mayweather Jr. and Khaled Khaled in a dubious ICO. The two celebrities were forced to refund the earnings they gained from the ICO. This negativity discourages investment in Cryptocurrency projects.
Another significant pressure on crypto comes from the SEC. recently the Security and Exchange Commission forced two ICOs to refund investors’ money. This is a negative role regulation plays on investor’s sentiment in the crypto industry. Furthermore, the rampant hacks on unregulated exchanges further deteriorate the opportunity for robust growth in the industry.
Is This The Beginning Of The End For Bitcoin?
It is certainly not since Bitcoin has been through this cycle before. Throughout the currencies ten-year existence, Bitcoin endured a series of bull and bear runs. The cycle led to the asset’s peak in 2017. Technically, rumours of a Bitcoin death is merely exaggerated. Bitcoin attained significant mindshare along with their market share and positive sentiments towards digital commerce. This means that there are high possibilities that Bitcoin and other cryptocurrencies will go mainstream.
Factually, 2018 was a very bad year for Bitcoin, but one bad year does not rule out the future of Bitcoin. Whether this trend is the new normal for the cryptocurrency or a new chapter in its development lane is yet to be determined by the year’s end.
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