Renvale Capital analyst’s view on recent bubble burst

September 4, 2018 /MarketersMedia/ —

Cryptocurrency prices have dropped drastically in January, and many people are wondering whether this will continue; potentially rendering cryptocurrencies worthless, or whether they will rebound to another possibly record-breaking high as has happened so often in 2017.

Bitcoin dropped 50% to $10,000 in January 2018. The plunge began when the South Korean government announced a crackdown on cryptocurrencies which caused a “fear factor” that has snowballed into traders to mass sell.

Similar to the November 2013 bubble, the 4-month massive jump was caused by global media coverage and a surge of amateur investors; taxi drivers, stay-home mothers and factory workers jumped into cryptocurrencies. Additionally, many nations have announced the implementation of new regulations surrounding the cryptocurrency market.

These are the main reasons as to why prices of cryptocurrencies have suddenly dropped, however it is important to note that most investors have merely turned to other assets to temporarily store their investments. European gold traders have reported a “five-fold increase” in demand during this period.

The cryptocurrency ecosystem is still new and investors worry when market infrastructure collapses. Many observers claim that the recent crash symbolizes that the bubble has burst, however the volatility of cryptocurrencies should be considered as an expected component in its path towards becoming a mature asset class.

It is important to note that Bitcoin has crashed 5 times from 2013 to September 2017 with plunges ranging from 36% to 71%.
During this time, Bitcoin has managed to recover and overtake previous pre-crash numbers in as short as a few weeks.

Renvale Capital believes that this could be a rare opportunity for those who have been contemplating on the right time to invest in cryptocurrencies. Bitcoin has historically taken an average of a few months to recover and break new highs from every crash. It is a well-known fact that when Bitcoin goes up, other cryptocurrencies follow. When you look at the market fluctuations from a bird’s-eye perspective, it feels as though the market is overheated and is merely taking a short rest.

Another interesting factor to take note regarding the recent crash; January cryptocurrency dips have been a recurring theme for many years as people tend to exchange their cryptocurrencies into fiat in preparation for the Chinese New Year.

Renvale Capital was founded in 2006 in the US, where financial trust meets technological innovation, and has been one of the leading names in Wall Street since then. Since inception, their services include offering private investment services and managed forex account trading for private and institutional clients all over the world.

Contact Info:
Name: Renvale Capital
Organization: Renvale Capital

Source URL: https://marketersmedia.com/renvale-capital-analysts-view-on-recent-bubble-burst/402788

For more information, please visit https://www.rvcgroup.com/

Source: MarketersMedia

Release ID: 402788