This bear market has been in the making for quite some time. I believe it ultimately stems from an unbalanced overall crypto market cap to underlying asset value ratio. Let me explain.
In 2017, the market was up over 30x, but adoption (beyond merely investing and trading in BTC and alts) wasn't even close. By adoption, we mean real-world implementation and use of these projects and their associated product offerings (utility value). Think about it. We almost touched a $1 trillion overall mcap (INSANE!!), but the real value of these technologies and assets was nowhere near that high (arguably closer to $100b, or 1/10th of the overall market value then).
To put it simply: this is a story of financial reality being divorced from utility fundamentals. So...we have to, expectedly we might add, correct course. This is what has been and is still currently taking place.
That's the macro perspective.
Many other factors have played into this market as well. At surface level, there is, without a doubt in our minds, coordinated price manipulation by whales, strategically planned FUD droppings by major news corporations and associations, capitulation and panic selling by inexperienced and/or unprepared investors, and all the rest. But keep in mind, this is what you signed up for. This is all part of the game when investing in an asset class as young as cryptocurrencies are.
The volatility we experience, exposure to price manipulation we have, and chances of regulatory bombardment are all risks we must be willing to take.
As far as the "comeback" is concerned, we have reason to believe the bulls will take over sometime in the next six months, most likely by the end of the year. There is plenty of big-time institutional money just hanging out on the sidelines, waiting for the correct entry. I don't believe they'll buy BTC for more than $6.5k or so. In the midst of this crypto-recession, there has been a plenty of positive news and reasons to be bullish long-term. These include but are no means limited to:
-25million+ people own crypto & growing
-3million smart contracts created in the last three yrs
-$10billion+ raised by ICOs in 2018 thus far
-Over 160+ dedicated crypto and blockchain-focused early stage and hedge funds
-NASDAQ, NYSE & Goldman Sachs opening crypto corridors
👉What's the Best Way to Play the Market Right Now, in My Opinion?
Many of the best and our most favorite altcoins are at some of the lowest prices we will ever see. Regardless as to whether or not they trickle down a tad further over the next few weeks/months, doesn't matter long-term.** Accumulate your favorite alt projects like it's your day job (by accumulate, I mean don't go in all at once. Put money in here and there at dips and intervals)**. It's hard to recognize these trying times as an opportunity, but you must. You don't have to be a chartist to recognize this.
Bitcoin and some of the higher mcap alts are great for intra-day traders as the market continues sideways (* I am not a trader). If you're a day trader, it's easy to make some quick profits buying the dip to the low $6k range and scraping the peaks. If you're able to trade on Bitmex (I Am strongly against it, its complete gambling), you can make a killing margin trading with the correct leverages right now. This comes down to your own charting and research and is, of course, risky short term.
Long term, these btc prices are also very low compared to what we'll see this time next year. Hard to lose here.
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Thank you for reading it.
