ChainDD Think Tank Report: The Bitcoin (BTC) Market Will Moon Again By May 2020
Analysis: The Bitcoin Market Will Moon Again In 2020
DD Think Tank, an analysis team under ChainDD, has recently published a comprehensive report, predicting that the price of bitcoin and other digital assets will only begin to experience a real bullish surge in 2020.
The Bulls Are Coming.
Per the report, after spending two months carrying out in-depth analysis and tracking of the entire crypto markets in 2018-2019, DD Think Tank discovered that the bulls might not return this year.
The team claims to have collected, processed and analyzed more than 100,000 pieces of data about the crypto markets, and it has also integrated over 900 government policies concerning cryptos from 224 countries and regions, covering dozens of vertical segments.
ChainDD has also stated that it carried out a weighted index calculation with 12 established digital currency pairs at leading exchanges, using its custom composite DD index to reflect the conditions, trend, and fluctuations of the entire crypto markets.
Importantly, ChainDD has made it clear that its latest annual report is the most comprehensive and intuitive 2018 report aimed at providing reliable data and trend guidelines for crypto investors across the globe.
2018 Crypto Market Analysis
DD Think Tank says it successfully summed up the crypto market data on CoinMarketCap and found that as at January 9, 2019, there were a total of 2,091 cryptocurrencies in existence, with a combined market capitalization of just $137.2 billion, a far cry from the 823.8 billion recorded during the crypto bull market.
In essence, the overall digital currency market lost a total of $727.6 billion, a massive drop of 87.76 percent on a year-to-year basis.
Explaining further, the team noted that DD Index plummeted 65.51 percent under six months. The DD Index is a digital asset index formulated by ChainDD in June 2018. The DD Index performs a weighted index calculation with about 12 established crypto trading pairs at top exchanges.
In 2018, the price of all top cap cryptos crashed by more than 80 percent. Bitcoin cash (BCH/BCH ABC) price shed 97.32 percent, while bitcoin (BTC) had the smallest price drop of 81.54 percent.
According to the team, king bitcoin (BTC) still enjoyed a relatively high level of recognition in the crypto space and was the digital asset with the best guarantee against devaluation despite its 81.54 percent drop.
The Rise And Fall Of ICOs
While the bullish market of 2017 motivated many market participants to launch several initial coin offerings (ICOs), drastically increasing the total number of digital assets from 631 to 1355 at the end of 2017 (93.19 percent increase).
Reportedly, in 2018, 731 ICO projects were launched, representing an increase of just 53.95 percent. The firm stated that about 64.29 percent of these ICOs were started between July and November when prices of digital assets were moving horizontally.
According to the firm, the sudden price crash of bitcoin to the $3k price area in on November 14, 2018, was due to overall harsh economic condition and lack of investor confidence on the market.
“The price plummet occurred right before the BCH fork battle, and BTC's computing power decreased significantly. Also, insufficient new money injected to the crypto markets means no follow up funds entered the market for rescue when the price dropped below the 6,000 USD mark, leading to further price decline of BTC to somewhere around $3,000,” the team noted.
A Year Of The Stablecoins
With the increased market volatility, forward-thinking firms started launching stablecoins in a bid to help crypto investors to cushion the adverse effect of the bear market.
The report notes that these stablecoins saw explosive growth in the second half of 2018, with fiat-backed stablecoins gaining colossal market dominance, while Ethereum smart contracts became a robust technological framework.
For the crypto newbie, DD Think Thank explained that the severe crypto winter of 2018 is not the first in the 10-year history of bitcoin.
“On October 1, 2013, the price of BTC was 132 USD, and on December 5, the price of BTC skyrocketed to $1,152, an impressive increase of 7.72 times. However, by early 2015, the price of the flagship crypto had crashed to 176 USD, losing 84.72 percent,” the team noted.
Accordingly, the price of bitcoin started rising again in the second half of 2016, and it hit 1,000 USD at the beginning of 2017. The bull run continued until bitcoin kissed $20K that year.
The firm also made it clear that the harsh market condition that lasted almost three years from 2014 made crypto enthusiasts start looking beyond bitcoin and exploring the underlying blockchain technology instead.
“Vitalik Buterin, an early bitcoin programmer, using ideas from his bitcoin experience, proposed the public blockchain platform with smart contract functions and established today's Ethereum via cross funding in 2014,” said the team.
DD Think says the creation of Ethereum and smart contracts paved the way for ICOs and crypto assets to become the first real use cases of distributed ledger technology (DLT) and was the primary driving force that fueled the price of bitcoin to its all-time high of $20k in 2017
2020 Will Be Another Great Year For The Markets
Specifically, DD Think Thank has stated that the entire bubbles and the opportunistic “storm chasers” will exit the crypto space and the markets will return to its value starting point.
“This cycle will last till May 2020, and the BTC reward will decrease from 12.5 to 6.25. Each time the reward is halved, the price of bitcoin rises and this period will see an explosive advancement of blockchain 3.0, which will be the integration of real economy and commercial scenarios with the highest explosive growth potential, leading to significant improvement of productivity and relations of production, and expansion of business models and innovation of application scenario implementation.”
The firm also hinted that current harsh market conditions would strengthen the blockchain space as developers will use the opportunity to update blockchain networks and build infrastructure that would withstand the next bull market.
“The next great opportunity will emerge in DLT sharing economy, property rights, applications, and account privacy and encryption,” concluded DD Think Thank.