AQR Capital Management Executive Says Crypto Markets Deserve B+ Grade for 2018
In a recent op-ed for Bloomberg, Aaron Brown, Head of Financial Market Research at AQR Capital Management, says that crypto markets deserve a ‘B+ Grade’ for 2018. He pointed out that Bitcoin’s 80% fall from $20,000 in 2017 looks similar to other peaks and falls in the Bitcoin network in previous years.
According to Brown, Bitcoin’s decline has been relatively mild compared with other years such as 2011 and 2013. In 2011 the market dropped faster than in 2013 and 2018. However, in 2018, the market has fallen faster than in 2013.
In 2011, the market reached its bottom a year after reaching its peak. After it, in less than two years it was able to recover. The situation was different in 2013. At that time, the market fell fast but it did not recover as fast as in 2011. It took four years after Bitcoin was able to reach a new all-time high.
He has also made a comparison between the Dow Jones U.S. Financials Index back in 2007 saying that the chart looks very similar to the year before the peak and one year after it. Nevertheless, the recovery in the crypto space will be longer than expected.
The Nasdaq Composite Index took 15 years to recover after the 2000 crisis. This shows that although it can take a long time for Bitcoin to recover, it is possible to see new all-time highs in the future. Indeed, he is sure about the future of the space and virtual currencies. He stated that cryptocurrencies are here to stay.
Bitcoin has recovered from its bottom during the last few days. Some days ago, BTC reached $3,250 and now it is being traded around $4,028 according to CoinMarketCap. Additionally, it has a market capitalization of $70 billion. Other digital asses such as Bitcoin Cash grew more than 100% in just a few days.