48 hours ago and on the 17th of December, Crypto traders were certain that Bitcoin would drop a few hundred points in value as was the norm every Monday for the past few months due to the the current crypto bear market. This past Monday, BTC was trading at $3,200 and many believed that the King of Crypto was set to test levels below $3,000.
Bitcoin’s ‘Mooniversary’ Was On Monday
However, this past Monday was different in that it was the one year anniversary of Bitcoin reaching its record All Time High (ATH) value. One year to the date, Bitcoin was trading at $20,000. The digital asset is now valued at $3,772 and had briefly tested $3,800 only a few hours ago. This is a 18.75% increment from the earlier mentioned Monday value of $3,200.
Further analyzing the total market capitalization of the crypto markets, we find that it has gained by approximately $20 Billion from its Monday levels of $103 Billion. The total market capitalization at the moment of writing this, stands at $122 Billion.
Will BTC Reach $20,000 in 2019?
Given the fact that many crypto traders and investors have taken significant losses due to the bear market, it is highly unlikely that we will see BTC at $20,000 next year. Those who got into crypto investing late into last year’s bull run, have experienced significant losses as a result of the crypto bear market. The excitement surrounding crypto that was there last year, has thus reduced with time.
Investing.com Senior Analyst, Clement Thibault, best summarizes this as follows:
Bitcoin holds a big promise of sovereign and sound money – the bubble we experienced a year ago was an unfortunate consequence of human greed and short term thinking. Bitcoin hasn’t changed in the past year and it remains the same asset, whether it’s worth $20K or $3K. It’s potential and usefulness haven’t diminished with the price.
As for a short 2019 outlook, I don’t see Bitcoin reaching new highs in 2019. I believe too many would-be early adopters got burnt badly last year, and once an asset has been labeled a bubble, a gamble, or a speculative investment, it takes time to rebuild the trust and appeal needed to push the asset forward.
It is Good To Be Cautious
Given the fact that the last few weeks since early September have found BTC continually declining in value, it would be wise to invest/trade with caution as this could be a temporary trend reversal brought about by the 1 year anniversary of Bitcoin’s All Time High value.
However, many crypto enthusiasts have pointed out the following events that could shape the crypto markets in a positive way. These events might manage to sustain the current level of ‘excitement’ in the crypto markets.
- Bakkt launch on the 24th of January
- VanEck Decision Deadline of February 27th, 2019
- Nasdaq launching BTC Futures contracts in Q1 of 2019
- Ethereum’s Constantinople upgrade in January
- Fidelity’s interest in digital assets
- A new year with fresh expectations
What are your thoughts on the 48 hour gains experienced by Bitcoin and other cryptocurrencies? Is it too early to celebrate a market recovery? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
