What To Learn About Crypto Assets Using The Altcoin Correction Index

    Analysts are constantly looking for new ways to assess the crypto market and to discover new metrics to use so they can understand how it works better. Because of this, the Altcoin Correction Index can be an interesting tool for them to understand how cryptos work and why there are performing so badly this year. Read our article to know more about it.

    The Worst Year Since 2014

    It does not matter which metric you use to at least perceive that cryptocurrencies are not having their best year so far. Just one of the major crypto assets is on the green side and it is the token of the largest and most successful exchange in the world, Binance (BNB tokens). Most of the market it at least down 70-90% this year and the best ones are down at least 50%, mostly.

    A crash has occurred. That much is clear. However, historical trends can help people to understand that the worst may have passed and there is space for a recovery after some time.

    Thomas Lee, from Fundstrat Global, has recently shared a chart in which he uses something called “Altcoin Correction Index” to understand the market better. The chart shows the percentage of tokens that are down at least 70% since their peak at the beginning of the year.

    Some cryptos like Salt and Einsteineum are down 98% while others like Bitcoin Diamond are down 97%. These tokens are basically dead, but a lot of them are still struggling. With 97% of the coins down at least 70% since their all-time high, the market is facing its lowest point since the crash of 2014.

    2014 Was Almost A Decimation Of The Crypto Market

    While many economists are still believing that cryptos will drop to zero, some old time investors that have been in the market since 2014 know that this is not the first time the market crashes. In fact, some altcoins may well go down to zero and break for once and for all, but a good part of the market will simply survive just like it did in 2014.

    Shortly after reaching their all-time highs in 2013, many tokens hit rock bottom in 2014. However, their price went up 2.7 times afterward in a seven week rally. While there were “only” 350 altcoins back then and more than 2,000 right now, it is just too soon to say for sure that cryptos are dead. Some may certainly be, but not most of them.

    At the time, many coins were reaching their all-time lows and Bitcoin and Ripple were among them. This time is no different. The market is, indeed, very volatile and the coins change their value all the time, so there is always space to get better after having a bad year.

    Four years from now, it is likely that many cryptos will be dead, but just as likely that a particularly larger share of the market will still be alive and going strong.

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    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

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