The market has seen yet another plunge after a short span of the subtle rise in market cap. The market fell from around $138 billion to merely $122 billion, losing about $16 billion from its market cap. The market has been standing at the same $122 billion for a day now, with a mix of reds and greens in the overall market,
The market situation is worsening and major sell-off events are being observed in the crypto space. Analysts and experts, however, were not very surprised by the sudden plunge in valuations of most of the cryptocurrencies. According to Sukhi Jutla, the founder & COO of MarketOrders, the market plunge was barely a natural market correction because it was overinflated last year. Similarly, most others are expecting a lower low for the cryptocurrencies. According to Ricky Li, Co-founder of Altonomy, the trading volumes of crypto speak for themselves. The market seems to be going down and a rebound is not expected any time soon with this kind of performance going on. Talking to BlockPublisher, he said,
There has been no fundamental change to the market as trading volume is still low with BTC/USD on Coinbase still hovering around $10k/day. With this in mind, we’re not expecting a real rebound anytime soon.
Although the market tried to fight its way out of the bear market a few days back, with subtle rises in most currencies, BTC came back above $4,000 and ETC rose from the ashes back to valuations above $150, Ricky believed that there is no factor that could justify the rise, with the trading volume that low, the only possibility for crypto is to dive even lower than it already has. He stated,
There is no real catalyst in the current market to justify the recent rebound. Coupled with continued low trading volume, this signals a thin and fragile market with the potential to nose dive even lower.
With all these analysts so sure about the fact that the bear market is not going to end anytime soon, it can be extracted that the valuations of BTC, ETC and other investor favorites would most probably see new lows in 2019.
