The last few days have been rather dramatic for the cryptocurrency markets, as most coins have marked double-digits losses. Bitcoin’s price shed $1,500 in one hour, which alarmed the community. However, the bigger picture engenders optimism, especially when we look back at the lows of 2018.
2018 Versus 2019
In late 2017, cryptocurrencies enjoyed price increases day after day, ultimately culminating in Bitcoin’s all-time high of $20,000. Some were caught off guard when the trend reversed in 2018, resulting in significant declines across the board. Bitcoin, for example, hit a low of $3,150 in December, exactly a year after reaching its all-time high.
The subsequent bear market scared the community, and the most recent crypto crash may have inspired similar fears. However, even if Bitcoin’s price continues to fall, it will still be significantly higher than last year’s low. If Bitcoin falls to $6,000, the price would still be almost double the 2018 bottom of $3,150.
It’s also important to note the major developments that have occurred since that time.
Bitcoin’s Fundamentals Are Strong
While the price is still plunging and Bitcoin fell by another 4% in the last few hours, its fundamentals are quite positive. Even though Bakkt’s futures platform was launched with minimal initial volume, it was still considered a big move in the right direction due to its regulated nature.
Bitcoin’s hash rate saw a short-term drop when the crash occurred, but it’s risen steadily to over 90 quintillion hashes per second. Also, as CryptoPotato reported, on-chain transactions have been consistently increasing over the years, hitting an all-time high today.
Bitcoin’s price at the moment is $8,000, which is a severe decline compared to just a few days ago. However, since the beginning of the year, the largest cryptocurrency by market capitalization has more than doubled in price, having started 2019 at $3,700.