It’s no secret that the cryptocurrency market (including Bitcoin) has been under a bearish run since last December 17th and it’s been going down steadily over the previous eleven months. But nobody was ready for the way in which the bears hit the market this November 14th.
It was just insane. The market capitalization for crypto went to its lowest point in a very short time. Bitcoin, which is crypto’s canary in a coal mine (so to speak) dropped below the 5k mark. It’s trading at $4,443 as we write this article and is expected to hit the 4k mark if things keep going in the same direction.
Can the trend change? Is there any good news to report? Any reason to be hopeful? The answers are: yes, yes, and yes.
The trend can and will change. We know this because drops as dramatic as the current one have already happened four times over the last ten years. Every time the market has bounced back to reach previously unexpected (allegedly impossible) heights.
About good news to report. There’s plenty. Blockchain projects like Ripple, Cardano, Stellar Lumens, Tron, and some others have reached impressive milestones this year. They are gaining adoption, becoming useful in the real world and securing strategic partnerships.
Also, even in the bearish climate, the crypto infrastructure has kept snowballing so you’ll be hard pressed to find any place in the world in which you can’t trade crypto these days. SEC declared Bitcoin and Ethereum to be commodities instead of securities (with a decision on XRP still pending), Thailand legalized crypto trade, the first all-crypto bank is on the works at Malta, Litecoin bought a bank in Germany, and we could keep going. The point is the industry is growing even as the market shrinks.
And about reasons to be hopeful. We believe hopeful is not the right word. We are sure that the trend will reverse. We’re not alone on that. Many experts think that way too.
Tom Lee is a well-known crypto markets analyst at Wall Street. He predicted, earlier this year, that BTC would reach 25k before the year’s end. After the recent developments, he corrected his forecast to 15k, but he didn’t back down in that the market will start growing again.
Another factor to take into account is that institutional interest in digital assets has been growing. Wall Street’s traditional financial institutions have started to design products based on alt-coins to offer their “normal” customers. ICE (the New York Stock Exchange’s parent company) partnered up with Microsoft and Starbuck to create a new crypto exchange that is expected to come only very soon.
In short: Bitcoin and the market may be down, but the industry is growing steadily, and the bulls will come to visit sooner or later. When, I hear you ask? We have no idea, but it’s unavoidable. The market will have to hit rock bottom before it bounces back and we can’t tell you when that will happen either. But it will.
In the meantime, we all get the chance to buy Bitcoin (and altcoins such as TRX, XRP, and ADA to name a few, the ones who have massive potential) cheap.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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