How the cryptocurrency market changed in 2019

How the cryptocurrency market changed in 2019

How the cryptocurrency market changed in 2019

In January, Bitcoin cost $ 4,000. Since then, the blockchain industry has changed a lot: positive forecasts have returned, and the sphere of digital money has turned from an underground business into an integral part of the global financial system.

In 2017, the cost of Bitcoin increased 20 times, the first cryptocurrency set a historic maximum of $ 20,000, and the market was covered by a real “HYIP” and FOMO. Then, in the first six months, the value of the main digital coin went up from $ 963 to $ 2500. Yes, the main growth came in autumn and winter.

Now the situation in the industry is not just similar – Bitcoin is doing even better than in that famous season. The asset is already ahead of its competitors from the past, because since January 2019 its price has increased 3 times. Now it is at the level of $ 13,000, 5 times higher than it was in July 2017. The scenario in which the cryptocurrency will rise to $ 30,000 in the coming months does not seem so utopian.

In the following article we are trying to figure out how the bitcoin came to success this year, why it became possible and what key events occurred in the industry.

Winter

  • Bitcoin price – $ 4050
  • Total cryptocurrency trading volumes – $ 14 billion
  • Skeptical market mood
  • Bitmain and other large companies reduce staff and close offices

The problems of the Chinese mining giant Bitmain began in 2018, but a massive wave of reductions occurred precisely in the winter of this year. After the closure of several overseas offices, the company froze plans to launch a large enterprise in the United States, the project was planned to attract more than $ 500 million and about 400 people.

The company Giga Watt from the United States closed completely. In January, they stopped electricity supply to digital money mining devices. In addition, three cryptocurrency exchanges stopped working in the first month: CoinPulse, Liqui and QuadrigaCX, the NEM project was on the verge of extinction and asked for help from the community, and Coinsquare, Canada’s largest marketplace, reduced 27% of employees.

Bitcoin experts predicted a deeper decline

Winnie Lingham, head of Civic startup, warned that the rate could fall to $ 3000, and then continue to decline (as a result, the price went down to $ 3400, after which it began to grow). A graduate of Princeton University,  analyst Murad Makhmudov, predicted that the cost of Bitcoin would drop to $ 1,700- $ 2,200 by April. Another expert, known on Twitter under the nickname Galaxy, assumed that the market would start growing only in the second half of 2019.

According to specialists at JP Morgan, the price of the asset should have gone to the level of $ 2,400, and from there – to $ 1,260. Cardano founder Charles Hoskinson went even further – he assumed that Bitcoin would reach a historic high of $ 20,000 only after 11 years.

Bank JP Morgan announced the launch of its own cryptocurrency

One of the largest banks in the world, JP Morgan, announced plans to launch its own cryptocurrency JPM Coin in February. After this announcement, opinions appeared on the market that the Ripple token could now depreciate, since it would become useless, because it is focused on creating solutions specifically for the banking sector. However, the cost of XRP did not suffer from this, and the blockchain start-up continued to enter into partnerships with financial institutions around the world.

Interest in cryptocurrency began to return, and Bitcoin and Ethereum – to grow

In the second half of February, the price of Ethereum reached $ 140, and Bitcoin returned to the mark of $ 4000 after a continuous 13-day increase. At the same time, the liquidity of the coins increased almost 2.5 times over the month, and the trading volumes increased to the figures for the first half of 2018. The daily amount of transactions at the end of winter rose to $ 29 billion, and analysts began to talk about returning investors to the market. As a result, February was the most successful month for cryptocurrency since the middle of last year.

Spring

  • Bitcoin price – $ 3800
  • Total trading volume in cryptocurrencies – $ 24 billion
  • Mood in the market – waiting
  • Cryptocurrencies began to show multiple growth

In early spring, Binance Coin became the leader in growth, from December to mid-March, it went up by 145%, and by the end of April – by 500%. It was to the benefit of the company that IEO investors liked it – the crowdsales on Launchpad took a few seconds, and the sales of new tokens were held in BNB.

Litecoin increased in price by 83%, and rose to number 4 in the list of the largest cryptocurrencies. Altcoin Tezos showed 306% growth in a 4 month timeframe, EOS  250%.

ICO ceded to IEO

In the first quarter of 2019, projects on the initial placement of tokens collected 58 times less funds than in the same period in 2018. Now all the money went to IEO, and the big exchanges, following Binance, began to launch their specialized platforms. Most crowdsales ended in success not only for projects that attracted funding for a few moments, but also for investors, since the cost of tokens instantly increased several times immediately after the sale.

Bitcoin upgraded the 2019 highs time after time

On April 3, the cost of the first cryptocurrency rose above $ 5,000, forecasts changed from pessimistic to restrained — they estimated the cryptocurrency to reach $ 6,000, $ 7,000 and $ 10,000 within several months, but few dared to suggest that Bitcoin would overcome all these marks much faster. By the middle of May, the coin was trading at $ 8,280, and at the end of May it exceeded $ 9,000. Bitcoin’s trading volumes exceeded $ 30 billion, although in early spring the total amount of transactions in the market was lower.

Forecasts began to improve

Despite the fact that some analysts continued to believe that Bitcoin was falling to a mark of $ 3,000 and below, much more positive forecasts began to appear. Trader Peter Brand assumed that soon the cryptocurrency would rise above $ 10,000, Yoni Assia from eToro noted that the market began to recover, and OKEx Operations Director Andy Chung started waiting for the first cryptocurrency to reach $ 20,000 by the end of the year.

Summer

  • Bitcoin price – $ 8500
  • Total trading volume in cryptocurrencies – $ 85 billion
  • The mood in the market is extremely positive.
  • From correction to growth

In late spring, Bitcoin cost $ 9,000 for a short time, after which it dropped below $ 7,700 as a result of a weekly drop. Mati Greenspan and Tone Vays predicted a further depreciation, but these assumptions were not destined to come true. The correction ended fairly quickly, and by June 26, the coin set an annual maximum of $ 13,700.

Announcement of the Libra project from Facebook

On June 18, the social networking site Facebook stirred up the digital money industry with the announcement of the Libra cryptocurrency and Calibra wallet. Rumors about this project have been going on for several months, but after the official statement of the company, the whole world started talking about the token that wasn’t even launched yet.

Central banks in different countries claimed that Altcoin could not replace Fiat, the US Congress demanded several times to suspend development, and other participants of the blockchain industry criticized the coin due to Facebook’s poor reputation.

Crazy Bitcoin and Ethereum Predictions

In the summer, analyst voices assuming a further price decay of digital money are almost not heard. Now, it feels as if the experts trying to outbid each other, because the number of experts who predicted Bitcoin growth from $ 30,000 to $ 1 million cannot be counted even if you use all of your fingers on both hands. Most often there were opinions that in the next two years the price of the asset will reach $ 100,000.

Ethereum also shows a positive movement. A crypto-analyst known on Twitter under the nickname BenjaminBlunts has calculated that the altcoin will reach $ 1,000 by the end of 2019. For ETH, this means a 270% increase in six months.

Perspective

In 2019, the market seemed to be back from the holidays and continued to do what it best knows how to grow. The governments of large countries are already seriously thinking not only about regulating the industry, but also about issuing their own digital money, just like large financial institutions.

Cryptocurrencies have never been so promising as now. This means that there is no way back anymore – this is no longer a bubble and no doubtful assets, but a part of the financial system that is gradually integrating and spreading more and more.

 

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About Viktor Sokolov 87 Articles
Nerd, entrepreneur & coffee aficionado. Believes that blockchain infrastructure and bitcoin will be the money system of the coming decades. Trying to make visible what this means for technology, economy, companies and societies.

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