As Ran Neuner, producer of Crypto Trader Emerging from CNBC Africa, bitcoin fell by 30% on five different occasions in 2017. This month's 20% correction of bitcoin is tolerable if we take into account major corrections which he has been in the last 12 months.
Major correction
Bitcoin fell from a peak of $ 19,648 in December to a minimum of $ 10,000 this year. Other large cryptomonas such as ethereum and bitcoin cash also recorded corrections somewhere at 50% last year. The ether price dropped in one installment from $ 360 to $ 130. Since then, the ether has exceeded $ 1,000, or even $ 2,000 in the markets of South Korea.
Major corrections prevent short-term bubbles on the cryptomonas market, because they remove the speculators and weak links in the game. After major corrections, the market becomes stronger and initiates stronger rallies.
The ethereum co-founders Vitalik Buterin and Charles Hoskinson expected to have a major correction on the cryptomonas market, which grew rapidly in a short period of time. Numerous blockchain projects have reached market volumes of several billion dollars, even if they do not offer products to users, but only white papers in which they are batting the plains.
When the market is dominated by non-product-oriented ICOs, without users and without real business models, then you can really expect a correction. Cryptomonas market has exceeded 500 billion dollars for the first time in history. Buterin doubts that evaluation is warranted.
The recent correction led to a $ 200 billion drop in the crypto market. It was necessary to make sure that the market remains stable and strong. Already in the last 24 hours, cryptomonas market valuation has increased from $ 450 billion to $ 520 billion (over 70 billion).
Where is the market going?
After the bitcoin has fallen, the market should have a strong 2018, taking into account that institutional investors and retail traders have entered. There are several governments around the world to create regulations and a legal framework for bitcoin, which will attract millions of new users to the crypto market.
Constantin Papadimitriou, president of Pundi X, said in an interview that about 10% of all bitcoin transactions are taking place in India. According to Pundi X, which focuses on offline sales of cryptomonas, demand for bitcoin in India is higher than ever, even if governments warn citizens not to invest.
The Indian government is unlikely to legalize and regulate the short-term cryptos market. However, they have created a working group that is already studying the issue and is more likely to regulate bitcoin markets.
After China, the largest remittance market, banned bitcoin, the next big market in terms of remittances and electronic payments is India. The penetration of the bitcoin on the Indian market would lead to an increase in the activity of digital coin users.
