2018 has been a nightmare of an year for cryptocurrencies, atleast as far as the valuation is concerned. Over the course of the year markets shed 84% as $700 billion left the space. What goes up so dramatically fast must, inevitably, come down again and this has been a cycle seen over and over in markets around the world.
However, can the opposite also be true. According to one of the 7 predictions by Weiss Ratings, this must be the case. According to the independent stock and financial analysts, Bitcoin will become akin to ‘digital gold’ and cement its place as a store of value. Weiss also predicts a new all-time high for Bitcoin in 2019, which means it will need to break above $20,000, its previous peak.
In terms of market price declines, 2018 was a disaster. What about 2019? Here are our 7 forecasts for this year: https://t.co/MQgzg6nnhm #WeissRatings #crypto #cryptocurrency #altcoins #bitcoin #btc #xrp #ada #holochain
— Weiss Ratings (@WeissRatings) January 4, 2019
The blog post says:
“What few people recognize is that thanks to the 2018 price declines, most of the weakest hands in the market have departed. Meanwhile, stronger diehard believers have held firm or even accumulated more Bitcoin. Distributed Ledger Technology has continued to advance, as major progress was made in fixing known deficiencies in first-generation cryptos.”
They predicted other outcomes too, such as major altcoins dying and new ones coming up. The stated:
“Altcoins are typically less well-known and less liquid. But among them, a select few with superior technology will get traction in the real world with increasing adoption. They will ultimately return to their all-time highs. And some could rise a lot further — to as much as 20 times their prior peaks.”
They even say that Web 3.0 is on the way. The blog post added: “Coins like EOS, Cardano, Holochain, and others are currently leading the charge to create Internet 3.0 — a more secure and more sustainable worldwide web. Other cryptos are in the wings and not yet even on the market. Meanwhile, many me-too competitors are also jumping into this space.”
Bloomberg has its own Galaxy Crypto Index which tracks some of the largest crypto-currencies by market capitalization. This is also indicating a strong buy signal which could be a sign that things have reached the bottom for digital currencies.