As we move towards the end of the year and 2019, the crypto markets have been experiencing a severe downtrend that has affected the majority of the digital currencies. Their values have plummeted and only the color red has been visible when looking at charts. The crypto community and investors have been divided, with some believing the markets will bounce back and others feeling more bearish about the future. What are the reasons for this bad year? What does this negative year for crypto mean in the future?
This bear market has been brutal for a lot of virtual currencies. The value of the first-ever crypto, bitcoin, has been tremendously affected. It has lost close to $16,000 in value since its peak at $20,000 in December 2017. Over the last week, its price saw a decline of close to $3,000 and hasn’t stopped ever since, fluctuating between $3,800 and $4,000. In the past few days, bitcoin has tried to bounce upwards with much difficulty.
Ethereum and Litecoin have also been hit by this negative trend. Their values were under $100, which marks yearly lows. As a result of bitcoin, and other major coins, losing value, the whole market has collapsed and hundreds of altcoins have seen their value drop in a heartbeat.
We could point the responsibility of this situation to the fact that users and investors do not see the potential of the blockchain technology and of cryptocurrencies being fully developed as of yet. This bear market could be explained by a lack of trust and enthusiasm in the technologies and their applications. Another major event, the bitcoin cash fork, could have negatively influenced the crypto community.
What will happen in the future is the main question for crypto investors. As the year 2019 approaches, we can hopefully expect for a positive uptrend in markets and a rise in the value of bitcoin and other decentralized assets. The whole crypto community is hoping for a bullish period to occur in the months to come. Will 2019 be more lucrative in terms of crypto gains compared to 2018?
TLDR: Cryptocurrencies have experienced a tough year, that has ended with a bloodbath in the markets. As we move forward, we truly hope that 2019 will be a better year for digital currencies.