Crypto Coin Prices Stabilize, But Union Square Ventures Analyst Believes They Could Slip Further
Crypto Prices Stabilize But One Analyst Believes They Could Slip Further
After a day of some large gains in the crypto world, the crypto market has stabilized. Thus far, they have not lost their gains to the bear market. However, one expert believes the future could be bleak for crypto.
The Positive Results Of The Crypto Market
Thus far, BTC has climbed by about 3% to trade at about $4,000. This is quite impressive after it experienced a low of $3,600. Although it is trading at about 20% from its lowest point in 2018, this is still down from its recent high of $6,600.
What The Experts Think
In a recent blog post, the co-founder of Union Square Ventures, Fred Wilson, warned that investors should not get too excited by the recent spike. He said that losses but not be far away in the current bear market.
He went to state that for those who were investing in tech startups in 1999-2002, it was a brutal time. That period would be forever burned in their minds. The belief in the internet and the potential it held was severely tested. He added that most that left never went back.
He was talking about the 1999 dot-com bubble. Wilson explained that having been in one bubble market before that it was likely there would be major losses for the BTC and crypto. Wilson explained that while the crypto market had seen about 90 percent of its value wiped out in USD terms in the past one year, things could get worse. He gave the example of Amazon, which lost 80 percent of its value in the 1999 bear market. It was then cut in half again before it bottomed, about two years after it had peaked.
The Stability Versus Popularity Debate
Although crypto markets are hard to predict, there is a general agreement amongst investors that it is not worth getting excited about a minor pump. This is especially so after weeks of losses on all fronts of the crypto world.
A senior market analyst at eToro, Mati Greenspan recently explained that recent price movements in the crypto world have re-energized the stability versus popularity debate. He noted that crypto would have more utility if the market were stable.
However, it would bring about a conundrum. If it were not for the price volatility, many people would not know about the Bitcoin. A major reason many people know about the BTC in the first place is due to the crazy bull run of 2017. This brought in a huge inflow of crypto users. In fact, the inflow was so huge that exchanges had a hard time trying to cope with all the new traffic. However, it now seems that a bear run too can generate excitement.
It is still unclear whether the market will hold as prices plummet. However, it is worth it for any investor to consider the bear market will not end soon. Thus, more volatility, both downwards and upwards with continue to hit the crypto world.