Last week cryptocurrency market experienced a wobbling period when lots of digital coins faced the crash. Most of the public attention was occupied by the 30% fall of bitcoin, even though it wasn’t “Big Daddy’s” first plunge of this rate in 2017. Reaching the drop of $11,885 after the triumphant rise to $20,089, bitcoin stirred new discussions concerning the crypto bubbles.
Some predicted the further plunging of bitcoin by 50% when the others were expecting the bubble to go off. However, just in 24 hours after all the cryptocurrencies plunged in value on December 21, the whole crypto market has wholly rebounded.
Two steps back, one step forward
Before the correction on December 21, the total market capitalization surged from $480 billion to about $600 billion. By December 25 the market valuation of cryptocurrencies decreased to $540 billion.
Interestingly, two days before Christmas all digital coins on the market from bitcoin to the top 100 currency have increased in value. For example, Bitcoin Cash went through the most substantial increase in the highest-ranked 20 digital coins with a 52% overnight price gain. Meanwhile, Bitcoin, Ripple, Ethereum, Litecoin and some others have risen by over 20%.
Right before the rebound, on December 22, Robert Reid and Alan Silbert, as well as others analysts, pointed out that throughout the whole current year, both the price and market valuation of the father of all cryptocurrencies have dropped by more than 30% six times. And more importantly, after each devaluation bitcoin managed to recover and even gain in value again.
In particular, Reid tweeted that “Bitcoin has "crashed" 30% six times in 2017. Each "crash" has been followed by an increase of: 76%, 237%, 183%, 165%, 152%. Bitcoin takes 7 steps forward, 2 steps back, 7 steps forward, 2 steps back. Every 2 steps back are heralded as the end of bitcoin Relax!”
At the same time, a bitcoin expert and financial analyst Max Keiser also emphasized that in the short-term period bitcoin will rebind indeed and easily surge to $20,000 or even higher.
According to the data, available on the CoinMarketCap on December 25, the most fast-forwarding cryptocurrencies among top-100 are Dent (+90% within 24 hours), Substratum (+76.6%) and Enigma (+52%).
Speedy recovery after “healthy” pullback
Analyst Tom Lee in the interview with Bloomberg described bitcoin’s drop as a “very healthy” one.
According to Fundstrat Global Advisors’ head of research, bitcoin has been following network value for some years.
“If anyone says that Bitcoin is trading on pure speculation, they haven’t done their work,” said Lee.
He also added that he considers bitcoin the smallest bubble he had ever met in case if anybody said that bitcoin is one.
“The intrinsic/fundamental value of bitcoin has risen in the past month given the surge of new wallets and hence, explains the rise in our short-term target price," also said Lee.
Experts have been quite positive about bitcoin’s foreseeable future. Lots of them predicted the price of bitcoin and total capitalization of the crypto market to grow during the festive season, particularly, around Christmas and the New Year. This is expected to happen thanks to the possibility of more relatives making an acquaintance with the crypto market.
After the December 22 correction, the crypto market has demonstrated a pretty speedy recovery, even though, the valuation of the market and the price of every cryptocurrency has not come back to the previous rate. Anyway, from Christmas to January 1, experts guess that the total market capitalization will keep rising and the market is more likely to demonstrate hopeful signs of growth after the pullback.
Screenshot source: CoinMarketCap