January 22, 20184min964

Is This The End of Crypto?

Last week saw one of the sharpest drops in crypto token prices in a while. This is on the back of another major correction less than a month ago. So, does this mean the good ol’ days of daily double digit growth are over?

 


 

There’s no simple answer of course, but we can do some basic analysis to see what’s going on.

Throughout November, December and January we’ve had absolutely amazing growth and this kind of growth of course can’t go on forever. The exuberant “me too”, “fomo” nature of the unregulated crypto-currency market with thin liquidity combined with large amount of amateur investors will inevitably lead to very quick price increase during the bull phase.

On the other hand, this also means that when China or South Korea as much as sneeze, panic sets in and people quickly pull the sell trigger, sending prices plummeting in order to protect those massive profits or weak buys.

We’ve seen all this many times before, but there is one phenomenon that is somewhat new now. Bitcoin’s dominance has hit an all time low of just 25% and many investors are turning bearish on it. This could spell trouble for the altcoins as falling Bitcoin will inevitably lead to falling prices of alt coins. During the bull phase we saw an inverse relationship where Bitcoin would rise at the expense of Alts or vise versa. This time it could be different.

We’d recommend keeping a very close eye on Bitcoin’s price over the next few days. If it closes below the 200-day moving average ($8,000-$9,000) it could trigger a more serious correction in the market. The manic phase seems to be over (for now at least) and reality is setting in.

 

Take a moment to look at the graph below and ask yourself where we are right now.

The last three months might have presented the easiest money making opportunity of the crypto market we are ever likely going to see. While you could hardly go wrong in 2017, with regulation closing in and Bitcoin as the market leader showing serious signs of weakness, 2018 is setting up to be a trickier year for investors and especially traders.

ICOs are still going strong though, with most of them selling out in minutes if not seconds. In November and December of last year, ICOs raised over $1 billion of start-up capital per month. That is a staggering amount of money, eclipsing traditional venture capital investments and does not look like it’s running out of steam anytime soon.

So keep an eye on our website, as we bring you more exciting ICOs daily.


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We are the new economy news hub. 2100NEWS is the professional index, data, and tools provider in the digital asset space, offering Crypto Market Intelligence, providing the perspective you can trust and equipping you with information edge you need to stay ahead. (Real-time data of token issuers and news, analysis and commentary from community.) We are very excited to contribute to the evolution of the industry and build an ecosystem around our offering (the institutional-grade data infrastructure required to enable institutional investments in digital assets). We want our contributions (Contents and Tools on 2100NEWS.com) to be useful for helping investors.


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