Many investors are wondering if the crypto market will rebound in 2019. Here’s a look at some of the factors that could influence the market this year.
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The current state of the crypto market
The crypto market has been bearish since the beginning of 2018. Many investors have lost faith in the industry and have sold off their holdings. However, there are some who believe that the market will rebound in 2019. Let’s take a look at the current state of the crypto market and see if there is any merit to this claim.
The bear market of 2018
The bear market of 2018 was a time of great upheaval and uncertainty for the cryptocurrency market. The total market capitalization of all cryptocurrencies dropped by more than $700 billion from its all-time high in January 2018 to its lowest point in December 2018. The prices of individual cryptocurrencies also fell by large margins, with some coins down by more than 90% from their peak prices.
The bear market was caused by a combination of factors, including the bursting of the ICO bubble, regulatory concerns, and a general loss of interest from investors. However, there are signs that the market may be ready to rebound in 2019.
One reason for optimism is the increasing institutional interest in cryptocurrencies. Several major financial firms have made moves to enter the space, including Goldman Sachs, which is setting up a trading desk for cryptocurrencies, and Intercontinental Exchange, which is launching a crypto exchange called Bakkt. These moves suggest that there is growing confidence from institutional investors that the market has potential.
Another positive sign is the recent stabilization of cryptocurrency prices. After months of decline, prices have been relatively stable since December 2018, with some even showing signs of slight increases. This stability could be a sign that the worst of the bear market is over and that prices are beginning to bottom out.
Finally, there have been several important developments in the underlying technology of cryptocurrencies that could lead to increased adoption and use in 2019. These include the launch of new projects such as EOSIO 2.0 and Blockstack, as well as progress on scalability solutions like Lightning Network and Plasma.
Thus, while 2018 was a tough year for cryptocurrencies, there are reasons to believe that 2019 could be a turnaround year for the industry.
Reasons for the bear market
The crypto market has been in a bear market for over a year now, and there are several reasons for this.
The first reason is that there is a lack of institutional investment in the space. Institutional investors are hesitant to enter the market because of the lack of regulation, and the volatility of digital assets.
Another reason for the bear market is that there is a lack of use cases for cryptocurrencies. Most people are still buying cryptocurrencies as an investment, and not using them to purchase goods and services. This is because cryptocurrencies are not very widely accepted as payment methods yet.
Lastly, another reason for the bear market is that there has been a lot of negative news surrounding cryptocurrencies. From hacks to scams, there have been many headlines that have scared away potential investors.
The good news is that 2019 could be the year that the crypto market starts to rebound. institutional investors are beginning to show more interest in the space, and there are several new use cases for cryptocurrencies that are being developed. If the negative news begins to subside, then we could see some major growth in the crypto space this year.
The possibility of a rebound in 2019
After a difficult 2018, many investors are wondering if the crypto market will rebound in 2019. While no one can predict the future, there are a few factors that suggest that a rebound is possible. Let’s take a look at some of those factors.
Reasons for a rebound
Bitcoin and other digital assets had a tough 2018. Prices plunged, initial coin offerings evaporated and many startups that had been built on the promise of blockchain technology fizzled.
But some investors believe that 2019 could be a rebound year for the market. Here are three reasons why:
1) Most digital assets are still far above their lows from last year. While prices have come down sharply from their all-time highs, they are still up significantly from where they were trading at the start of 2018. This means that there is still a lot of interest in the space and that prices could rebound if sentiment turns positive.
2) The underlying technology is still being developed and adopted. Despite the challenges faced by the industry last year, companies continue to invest in blockchain technology and work on new applications for it. This shows that there is still a lot of belief in the long-term potential of the space and that adoption could begin to pick up again in 2019.
3) There are signs that regulation could become more favorable. Cryptocurrencies have been held back by fears of regulation in the past, but there are some signs that this could change in 2019. For example, the Securities and Exchange Commission has begun to take a more favorable stance towards digital assets, and this could make it easier for startups to raise money and for investors to get involved in the space.
What needs to happen for a rebound
Bitcoin and the broader cryptocurrency market crashed in 2018, but some experts believe a rebound could happen in 2019. Here’s what needs to happen for that to occur.
The cryptocurrency market suffered a brutal sell-off in 2018, with Bitcoin (BTC) falling more than 80% from its peak. This had a domino effect on the altcoin market, with most digital assets losing more than 90% of their value.
With the exception of a few brief respites, the crypto markets have been trapped in a prolonged bear market throughout 2018. This has led many investors to abandon ship and declare that Bitcoin is dead.
However, there are still some optimists out there who believe that 2019 could be the year of the rebound. Here’s what needs to happen for that to occur.
1) Institutions need to get involved
2) Regulation needs to improve
3) The use cases for crypto need to expand
4) Prices need to bottom out
In conclusion, it is difficult to say whether or not the crypto market will rebound in 2019. However, there are a few positive indicators that suggest that the market may be stabilizing and could potentially grow in the coming year. These include the increasing institutional interest in cryptocurrency, the launch of Bakkt, and the recent positive news from China.