With the major plunge in the market cap and in the price of Bitcoin, most analysts and crypto enthusiasts are predicting a lower bottom for Bitcoin than before. The price of Bitcoin has surprisingly plunged to $3,676 at press time and shows signs of further decrease as the reds are increasing every minute.
The horrible plunge seems to be increasing and has dragged down the market cap from $138 billion to merely $122 billion within a few hours. Almost the whole market, which was showing a subtle increase in valuations, has entered a bloodbath once again. Analysts are predicting a lower low for BTC, but once the low is achieved, a BTC rally is pretty much anticipated. According to Clem Chambers, CEO of ADVFN plc and Online Blockchain plc,
Though Bitcoin at $2,500 would not be a great surprise in the first quarter of 2019, we can expect the king of cryptocurrencies to rally hard later this year with levels making the previous all-time high possible in 2020.
Showing positive hopes for blockchain and crypto, Clem said that crypto and blockchain would be defining the next 25 years for tech. He stated,
Crypto is still here after all the scandals and crashes. It’s not going away and will likely explode in value again. Last year was like the early 1990s for tech. There are booms and bubbles and crashes to come as a huge industry is created. Blockchain/cryptocurrencies and other applications will define the next 25 years.
The bear market has made investors and enthusiasts very skeptical and careful about entering the crypto space. Projects with no use cases, and applications that don’t affect most people will eventually fade out because of the spreading awareness. Kevin Kelly, co-founder of Delphi digital was of a similar view, he said talking to BlockPublisher,
Crypto investors have begun to demand more than just a whitepaper and a dream from projects. Skeptics are the new enthusiasts, which will likely shift the focus this year from hype and speculation to real world applications with actual development progress.
All in all, it is expected from the market to see a lower bottom and after the low is achieved, the market is expected to rise, but with all that is going on, the investors are now very careful with their investments and crypto project would have to be careful with their use cases if they want to survive in the startup tsunami.