After a brief period of the market rising from the ashes, the cryptocurrencies have plunged once again showing major signs of reds in the overall coin market. Bitcoin, which was floating above $4,000 for the past week has also been dragged down by the market plunge to near $3,800. Other cryptocurrencies have also faced the consequences with ETH, BCH, LTC, and XRP falling by 12%,14%,12%, and 5% respectively. Resultantly, the overall market cap has fallen from $136 billion to $127 billion at this crucial time where the market analysts were predicting that the bear market is over.
The market lost almost $10 billion from its market cap in a very short span of time as shown below,
The market is still a victim of the volatility and according to analysts, a lower bottom is expected. Sukhi Jutla, Founder & COO at MarketOrders explained her views regarding this saying,
Crypto’s are still recovering from the volatility of 2018, lots of uncertainty still remains and will continue to do so for the next 6 months.
According to Sukhi, the plunge was a natural correction as the market was overinflated back in 2018 and most of the ICOs turned out to be scams. Explaining her views, she told BlockPublisher,
This is a natural correction of the market as the markets were overly inflated over the last year which lead to the crypto crashing in 2018 due to the realisation that many ICOs were scams and had been hyped. There were also more ICOs in 2017 so this led to a surge in investors buying ethers and bitcoin. 2018 had far fewer ICOs so the ether and BTC coins also feel as demand was lower.
Most of the analysts of the markets are predicting a lower bottom before the market starts to rise once again. The price of BTC is expected to fall. According to Kevin Kelly Co-founder at Delphi Digital,
BTC will bottom in Q1 2019 based on a few indicators. One of the most noteworthy is the fact that longer-term holders were big sellers in the most recent sell-off in BTC. We believe we are in more of an accumulation phase, similar to prior BTC cycles, which would imply a bottom in prices in the next three months.