Bitcoin Bull Comes Back in Q2 2019?
The valuation of the crypto market has dropped to around US$200 billion from an all-time high of over $800 billion this January, shrinking 75%.
A plurality of panic-striken projects based on Ethereum are massively cashing out their ETH, which led to the dramatic price drop in ETH with unabated downward price pressure. On August 14th, ETH fell to $250 and touched a record low of the year, dropping 82% from a high of $1,400 in this January.
“Though the market is sluggish at the moment, it is still far away from the real winter. People who have suffered the bear in 2015 should know it is far better now. Back then, there were only 20 cryptocurrencies with a market cap of just 10 million CNY.”
Huang predicted that Q2 2019 might be a turning point for the crypto market. The next bitcoin halve will theoretically come in the first half of 2020, while it is actually expected to come earlier than that thanks to the rapid increase in hashing power, maybe in Q4 2019; and its impact on the market usually starts half a year early, so the first turning point may come in Q2 2019. The second bull run probably starts when the market is filled with vigorous projects again.
While according to industry insiders, the current bear has few impacts on the investments in the primary market. It is the quality of the invested projects that matters rather than sentiment in the secondary market, but it is hard to predict when good projects will spring up to boost the crypto market like Ethereum emerged in 2014 and NEO in 2015.
“The market is not simply in cycles between bulls and bears, during which, the industry, actually, is quietly completing an upgrade, and the future will be brighter.” As COO of Bixin, a China-based crypto wallet provider commented.
“The current price is relatively rational. You may miss out opportunities if you choose to go into ‘hibernation’. Giants are born in ‘winters’.” said Yi Lihua, founder of LD Capital, who has invested in VeChain, Qtum, EOS, GXS, LRC.
While Zhao Dong, a bitcoin whale in China, commented, “Winter has yet to come and spring is still far away. But most investors can hardly get through it.”