The cryptocurrency market has been through a lot over the past year. Will crypto rise again in 2019? Here’s what experts are saying.
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The past year has been tough for cryptocurrencies. After hitting an all-time high in early 2018, prices collapsed by more than 80% in many cases. This has led to a widespread sense of pessimism among investors, with many wondering if the crypto bubble has finally burst.
However, there are still many reasons to be bullish on cryptocurrencies in the long term. In this article, we’ll outline some of the key factors that could lead to a resurgence in the prices of digital assets in the years to come.
One of the main reasons why crypto prices fell so sharply last year was due to the influx of institutional capital into the market. In early 2018, hedge funds and other big investors started buying up large amounts of Bitcoin and other digital assets, driving up prices to unsustainable levels.
Now that prices have fallen back down to earth, these institutional investors are still bullish on cryptocurrencies and are continuing to invest in the space. This is one of the main reasons why many experts believe that crypto prices will rebound in 2019 and beyond.
Another key factor that could lead to higher crypto prices is increasing regulation around digital assets. In 2018, we saw countries like Japan and South Korea start to introduce regulations around cryptocurrency exchanges and Initial Coin Offerings (ICOs).
This is a positive development because it will help to protect investors from scammy projects and fraudsters who have been taking advantage of the lack of regulation in the space. As more countries start to regulate cryptocurrencies, it will increase confidence in the asset class and draw more institutional investors into the market.
Lastly, another factor that could lead to higher crypto prices is increasing adoption by businesses and mainstream users. Over the past year, we’ve seen a number of big companies start accepting Bitcoin as payment, including Microsoft, AT&T, and Overstock.com. We’ve also seen a number of cryptocurrency projects launch products that are actually being used by people on a daily basis.
As more businesses start accepting cryptocurrencies and more people start using them for day-to-day transactions, it will help increase demand for digital assets and drive up prices over time.
The first crypto boom
Bitcoin and other cryptocurrencies had a moment in the sun a few years ago, but then prices took a nosedive. Will digital money make a comeback?
When Bitcoin first appeared on the scene in 2009, it was nothing more than an interesting idea. But by 2017, the price of Bitcoin had risen to over $17,000 per coin. That caught the attention of investors and speculators looking to cash in on the new phenomenon.
Other cryptocurrencies also saw dramatic increases in value during that time. Ethereum, for example, rose from around $10 per coin in early 2017 to almost $1,400 by the end of the year. Litecoin, another popular digital currency, went from $4 per coin to over $350 during that same period.
But then came the crash. By 2018, prices had fallen sharply across the board. Bitcoin tumbled all the way down to around $3,200 per coin, while Ethereum and Litecoin fell to less than $100 and $30 respectively.
What caused this sudden shift? In part, it was due to fears that regulation could stifle innovation in the crypto space. There were also concerns that certain coins (like Bitcoin) could be too volatile for mainstream investors. Finally, some people began to question whether digital currencies would ever achieve widespread adoption.
But despite all of these headwinds, cryptocurrency prices have started to rebound in 2019. Bitcoin is now trading above $9000 per coin, while Ethereum and Litecoin have both climbed back above $200.
It remains to be seen whether this is simply a temporary blip or part of a more sustained recovery. But with more and more people interested in digital currencies, it seems likely that we haven’t seen the last of crypto just yet.
The current market state
As of late, the crypto market has taken a turn for the worse. Prices have been on a steady decline since January, and most investors are wondering if things will ever go back to the way they were. While it’s impossible to say for sure what the future holds, there are a few factors that suggest that the market may rebound in the near future.
One of the most important factors to consider is the current state of the global economy. In recent months, there has been a lot of financial instability, particularly in regards to stock markets. This has caused many investors to lose confidence in traditional investments, and some have even turned to crypto as a way to protect their assets. If the stock market continue to decline, it’s likely that more people will invest in crypto, which could lead to an increase in prices.
Another factor to consider is the increasing adoption of crypto by both individuals and businesses. More and more people are beginning to see the potential of crypto assets, and this is likely to result in more investment. In addition, we’re seeing a growing number of businesses accepting crypto as payment, which is another positive sign for the future of the market.
Of course, it’s impossible to predict the future with 100% accuracy. However, these factors suggest that there is potential for the market to rebound in the near future. Only time will tell if this comes to fruition, but it’s certainly something that investors should keep an eye on.
Reasons for crypto’s potential second boom
Cryptocurrency, also called virtual currency or digital currency, is a type of money that is completely virtual. Cryptocurrency is not regulated by governments like traditional currencies, which means it can be more volatile. Despite this volatility, cryptocurrency has seen a huge surge in popularity over the past few years. In 2017, the value of Bitcoin, one type of cryptocurrency, surged from about $1,000 to more than $19,000. This caused many people to invest in cryptocurrency, and the market was booming. However, prices have since crashed and stabilized at around $6,000 per Bitcoin. Some experts believe that cryptocurrency is due for another boom soon. Here are a few reasons why:
1) Increased institutional investment – In the past few years, we’ve seen an increase in institutional investment in cryptocurrency. More and more firms are creating cryptocurrency funds, and this is helping to stabilize prices and increase demand.
2) Widespread adoption – In order for cryptocurrency to become truly mainstream, it needs to be adopted by businesses and consumers alike. We’re starting to see this happen now with businesses like Microsoft , AT&T , and Overstock accepting Bitcoin payments. As more businesses jump on board, we’ll likely see a corresponding increase in demand for cryptocurrency.
3) Improved regulation – One of the main concerns surrounding cryptocurrency is its lack of regulation. However, this is starting to change as governments around the world are introducing regulations for cryptocurrency exchanges and ICOs . As regulation improves, it will help to increase confidence in crypto and attract more investors.
If even just one of these factors comes into play, it could trigger a second boom in the crypto market. So if you’re thinking about investing in cryptocurrency, now might be the time to do it!
How to get involved in the second boom
As the saying goes, “There are two types of people in the world: those who have been involved in a crypto boom, and those who have not.”
The first boom happened between late 2017 and early 2018, when the prices of Bitcoin, Ethereum, and other major cryptocurrencies surged to unprecedented levels. Millions of people around the world started buying crypto, leading to a massive influx of new investors and a significant increase in mainstream awareness.
However, the boom eventually turned to bust, and prices crashed back down to Earth. Many people lost a lot of money, and crypto’s reputation took a hit.
Now, though, there are signs that another boom might be on the horizon. Prices have been rising steadily throughout 2019, and there are more new investors than ever before. This time around, though, things could be different. Here’s how to get involved in the second crypto boom – and make sure you don’t get burned again.
In conclusion, it is evident that cryptocurrencies have the potential to rise again. However, this entirely depends on the market and how investors react to the current situation. For now, it seems that the market is still in a state of flux and it is difficult to predict which way it will go. However, if the market does start to recover, then there is a good chance that cryptocurrencies will start to rise once again.