Cryptocurrency fans have been on a real downer over the past few months, sceptics quick to say the fun is over for Bitcoin, Ripple, Ether, Litecoin and Monero.
Indeed, after Bitcoin edged ever closer to $20,000 late 2017, the virtual currency flagship has plummeted since then, falling to $6,000 in February 2018. This is no less than a 70% drop in little under two months! Needless to say, Bitcoin owners had reason for concern. Yet the market may still have a few surprises up its sleeve, as we’ve seen Bitcoin go up to $11,500 then fall again to $7,000. You clearly need nerves of steel to invest in cryptocurrencies!
Right now, Bitcoin on the up again. From a technical standpoint, the price would be expected to reach its most recent highest point, which is around the $11,500 mark. If we look at Bitcoin’s performance visually, if the price breaks through $11,500, nothing should stop it shooting towards $20,000 and beyond! In which case, the sceptics will be kicking themselves for not buying in.
There are several factors driving these fluctuations, the main one being a desire on the market authorities’ part to monitor and regulate the market. Security is also a problem with stories here and there of how coins have been stolen from accounts. But, as with all markets, it’s all about supply and demand. If everyone jumps on Bitcoin, whatever the reasons or fundamentals, the price will skyrocket.
Bitcoin is by far the most well-known of the cryptocurrencies although not a day goes by without us seeing one or several newbies come onto the market. They are thought to total over 1500 to date. In terms of value, Bitcoin heads the leader board, followed by Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar… They all perform differently and dependent, of course, on their initial value (smaller face-value cryptocurrencies are performing the best).
On the graph below, Bitcoin, the blue line, is an « average » performer over the course of a year. And interestingly, some of these cryptocurrencies didn’t even exist a year ago…
All in all, whether the crypto market is bullish or bearish, one thing is certain: it’s a hugely volatile market. Investing in, and/or trading in, cryptocurrencies puts your capital at risk and it would be wise to ensure cryptos constitute only a small portion of your investment portfolio.
