According to Ethereum co-founder Joseph Lubin, the recent slump in cryptocurrency prices cannot obscure growth of the markets. In a recent interview with Bloomberg, Lubin stated that the current bear markets are not new since these have been taking place in the “blockchain ecosystem since 2009 from the invention of bitcoin (BTC).”
After experiencing brief gains, some digital coins found their uptrends capped by strong resistance levels. For instance, bitcoin surged 3% on Saturday but is currently stuck inside a narrow range below the $6,500 level, failing to extend its upside momentum. Also, Ethereum’s uptrend has not reflected the positive news in the market about its potential. Currently, the coin’s price is trying to strike through a stubborn resistance level at $300. The pair is now targeting $355 as the medium-term upside target while interim support could be found near $277.
However, according to Ethereum co-founder, Lubin, cryptocurrency bubbles are part of the ecosystem that has positives as well as negatives. Each of the bubbles experienced in the market has brought more interest and attention. Further, these bubbles have attracted entrepreneurs, investors and developers and the prospect of building key infrastructure and adding more value. As such, the current price slumps will not slow down adoption or development of core infrastructure for the cryptocurrency industry.
Moreover, according to cryptocurrency analysts and experts, the extended bear markets in 2018 are a mere correction. The claims are based on the increasing demand for digital coins based on $4 billion profits experienced by major cryptocurrency exchanges. Also, big financial institutions such as Goldman Sachs have shown great interest in cryptocurrencies despite the recent price slumps. From these developments, it is evident that people have started to value cryptocurrencies based on their impact in different institutions rather than their prices.
Do you think the increasing cryptocurrency adoption will be reflected in their prices?
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