Why the Crypto Bear Market Could Linger Much Longer Making It the Biggest Stretch in History
The bear market ruled the year for most of 2018. There have been many different predictions for what 2019 will bring, but the fact that the industry is still in a bear market remains. Presently, if the bear market continues in the same pattern that it already has been, this will soon become the longest bear market in the history of cryptocurrency.
The host for CNBC’s Crypto Trader, Ran Neuner, brought attention to this issue, saying that if the bear market continues for over one more month, it will reach the 420-day correction mark that happened from 2014 to 2015. He said,
“If this bear market continues for another month it will be the longest bear market in Crypto history; 2014/15 – 420 days. 2018/19 -390 days.”
In 2017, most investors remember the impressive bull market that cryptocurrency was shaping up to be. Even though Bitcoin began under $1,000, it soared to $20,000 at its greatest level. Though altcoins did not reach the same value, their price was multiplied by 200 within a year.
If this bear market continues for another month it will be the longest bear market in Crypto history;
2014/15 – 420 days.
2018/19 -390 days.
— Ran NeuNer (@cryptomanran) January 16, 2019
Before the market reached $800 billion in value by December 2017, Vitalik Buterin, known as the co-creator of Ethereum, believed that this valuation was not sustainable. He said there was a significant lack of progress by dApps and base blockchain protocols that posed a threat to the continued success.
Buterin, at the time, commented on the impressive $500 billion but questioned the success. He asked:
“How many unbanked people have we banked? How many dapps have we created that have substantial usage? Low added value per user for using a blockchain is fine, but then you have to make up for it in volume.”
He added simply that the numbers were not “enough” to be significant. Since that high point, the market has plummeted to $119 billion, dropping by 85% from its best day. Considering the awareness gained around the peak time already, the bear market is posed to continue the trend past the 420-day mark.
So total cryptocoin market cap just hit $0.5T today. But have we *earned* it?
— vitalik.eth (@VitalikButerin) December 13, 2017
The new investors that came in at this high point saw major losses at the time, causing distrust and a need to recover from the damage that the bear market caused. Vinny Lingham, the CEO of Civic and a venture capital investor, said,
“I think it stays in the range between $3,000 to $5,000 at least for three to six months. I don’t think we break through the support level of $3,000 just yet. I think there is a lot of buying in the short-term around that mark. If we don’t get out of the crypto bear market cycle in the next three or six months, the $3,000 level could go.”
This year will most likely be boring and uneventful, which is at least better than the continued disintegration of the market.
Even if the market keeps its market cap between $100 billion and $400 billion until the end of next month, it will still be the worst bear market that the crypto industry has experienced, and the longest one to date.