2018 saw the world’s leading cryptocurrency bitcoin (BTC) go through a very serious bear run. Back in December of 2017, the asset was almost touching the mark of $20,000 with the eyes of the entire financial market focused on it. Since then, it has only been a downhill run for it, expect a few spikes in between.
At the time of writing, the asset is floating around the mark of $3,859, with a 1.69% increase in its price value during the last 24 hours (as per www.coinmarketcap.com). It is now closing in on the $4K mark once again. The following graph shows bitcoin’s performance from December of 2017 up till today.
Bitcoin has come down by more than 75% of its peak value since December 2017. After the recent drop, that was seen in the past couple of months, it was even stated by many that bitcoin bubble has now officially burst. A lot of people have lost a large amount of money owing to this severe drop seen in the asset’s price.
Back in October, bitcoin was showing much-improved volatility regarding its price as it was lingering around in the $6,000s. The stability shown by the asset was being hailed by its proponents and it seemed that bitcoin was moving toward maturity. Just as all this praise was going on, bitcoin took the steep downhill road. It came down in the lows of $3,000s breaking all of its support levels in between. Now, the asset seems to be going back on the recovery road.
This is the kind of volatility that has marred the reputation of the crypto world in the eyes of the traditional financial market. One day the market skyrockets, and the very next, it is down in the dust. It is very hard to speculate on the behavior of this erratic crypto market. Volatility is one of the reasons why cryptos haven’t gained large-scale adoption in the current financial framework. Institutions and the general public hold back from entering this world owing to the level of uncertainty that is associated with this world.
It will be interesting to see where bitcoin goes from here on. It is being predicted by some that the asset will get more mainstream adoption after the crash of the fiat. There are some developments that need to be seen which might push the asset mainstream, such as a bitcoin ETF and establishment of platforms like Bakkt.
One thing is for sure, we are in for an interesting ride ahead.
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