Why the Current Crash in the Crypto Market is Good for Cryptocurrencies
On October 8, 2017, the total market cap of the cryptocurrency market was $148 billion. Three months later, on January 8, 2018, the market cap reached its highest point of $ 813 billion. A staggering increase of 449% in just three months. However, one month later, as of February 6, 2018, the market cap dropped to $308 billion, a drop of 62% in just one month. It is clear that current cryptocurrency market is a bubble and we have only started to drop back to normal figures.
In a classic bull market, there are four phases: stealth phase, awareness phase, mania phase and blow off phase. In the first years of cryptocurrencies, it clearly was a stealth phase. Let’s say from the beginning in 2009 until the start of 2017, when the total market cap of cryptocurrencies increased from $ 0 to $ 18 billion.
Then the awareness phase started, with increasingly cryptocurrencies getting more attention in the media. This awareness phase typically ends with the first bear trap and this bear trap started end of August when the market cap dropped from $148 billion to $ 124 billion in less than three weeks.
The third phase is the mania phase, where FOMO ...
Read More on Datafloq
In a classic bull market, there are four phases: stealth phase, awareness phase, mania phase and blow off phase. In the first years of cryptocurrencies, it clearly was a stealth phase. Let’s say from the beginning in 2009 until the start of 2017, when the total market cap of cryptocurrencies increased from $ 0 to $ 18 billion.
Then the awareness phase started, with increasingly cryptocurrencies getting more attention in the media. This awareness phase typically ends with the first bear trap and this bear trap started end of August when the market cap dropped from $148 billion to $ 124 billion in less than three weeks.
The third phase is the mania phase, where FOMO ...
Read More on Datafloq
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