It is no more news that the crypto market is struggling compared to its price performance last year. 2017 was the year people witnessed the price potentials of crypto. It led experts and bulls to predict that bitcoin could hit the $100,000 mark. However, bitcoin’s price performance is strongly indicating that these figures might not be achieved this year.
Why Has Bitcoin Slumped?
Experts have revealed that the slump is as a result of a massive transfer of the digital currency from holders to new investors during the bullish market run of 2017. Therefore, the moment the price dropped in January, these investors panicked and sold off their coin.
How Does Bitcoin 2017 Price Pattern Compare To That Of 2013?
For once let us forget about 2017 and its price peaks and focus on another bearish run of bitcoin in 2013. As at the time of writing, the price of bitcoin is $6517, while its price on September 27, 2013, was $133, In addition, the total market cap of bitcoin on the same day was $1,516,019,968 while today’s figure is $112,600,835,832. What this tells us is that regardless of the slump in prices, the market has come a long way from what it used to post on a daily basis.
Secondly, the market has matured considerably regardless of the price slumps. As a result, the market is increasingly being monitored by institutional investors. They know that things are not what it used to be in 2013 when the market was uncoordinated.
Also, the price pattern of bitcoin in 2018 is similar to the one registered in 2013. Both price patterns showed some level of stability during the same timeframe. However, the price of bitcoin in late 2013 experienced a surge. The price sharply rose from the $130 price range of September to the peak at $1,317 in November. Therefore in less than 2 months, the price of bitcoin increased by 90%. However, this was short-lived as the price declined at the beginning of 2014.
Can Bitcoin Hit $20,000 Before The End Of 2018?
2013 90% surge clearly shows that it is possible for bitcoin to experience the same volatile rise. However, history shows us that the volatile rise in crypto prices is closely linked to major events. Last year’s bullish run was as a result of the exponential growth of ICOs as well as the introduction of Bitcoin Futures. It is safe to say that a volatile increase in bitcoin price strongly depends on SEC’s September 30 decision on VanEck SolidX bitcoin ETF application.
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