Renowned investor and crypto researcher Willie Wu sees no resemblance between this Bitcoin correction and the bear market of 2014. Recall, then the main cryptocurrency lost almost 90 percent of its value and fell into a prolonged sideways movement for several years.
According to Wu, the structure of the crypto market has changed a lot over the years, so you should not count on a repeat of the events of 2014. NewsBTC writes about it.
When will Bitcoin’s decline end?
In 2014, the cryptocurrency suffered the most severe correction in its history. Then the price of Bitcoin fell to $200 and continued to trade at this level for another couple of years. Based on this data, some experts believe that Bitcoin will not be able to recover quickly by the end of 2018. There may be a couple more years of slack ahead.
Wu tried to refute this view. The analyst noted that the fall of 2014 was due to the collapse of Mt.Gox, the largest crypto exchange at the time. Now cryptocurrency trading is more decentralized, because none of the exchanges no longer handles more than 50 percent of the daily trading volume.
In 2018, many institutional investors and funds turned their attention to Bitcoin. There are more positive fundamentals surrounding the cryptocurrency now than ever before. Meanwhile, big companies like Coinbase and Gemini are working hard to develop new tools to attract big investors.
Look on the bright side. Let me remind you that in 2014-2015, the crypto market was recovering from the fall of Mt.Gox. At that time, this exchange was the main trading platform for Bitcoin – 90 percent of all trading was done through it. In addition, about 1/8 of all bitcoins were stolen at the time. Now the cryptocurrency market is more stable than before.
Digital assets may become the most popular investment of the future, which is why even the largest U.S. exchange network is preparing to open trading in Bitcoin futures. Together with the approval of a crypto exchange by the SEC, this event will prepare a good platform for the next bull run.