First quarter of 2018 broke a series of cryptocurrency market records. It was the worst first quarter in Bitcoin’s history and the second-worst quarter ever.
Bitcoin fell 65% from its all-time high, with a 50% drop during the first quarter of 2018. Dollar-wise this was a drop from $13,412 on January 1st down to $7266 on March 31st. $115 billion of market cap vanished as well.
This actually follows a pattern of the previous 7 years, current year being the eight.
After the crazy ride of 2017, everyone was expecting 2018 to be exciting for sure. And it already is, even if for completely wrong reasons. In 2017 we saw the amazing all-time-high of $20,000 in December. We also saw cryptocurrency entering the mainstream in a big way. Bitcoin was discussed on talkshows, major companies declared their interest in the technology and even banks started to work on implementing various crypto-related solutions.
Multiple governments realised that cryptocurrencies are here to stay, which resulted in various laws, rules and recommendations. Some countries reacted with fear and stricter approach, while others – welcomed the new technology with open arms.
We are entering Q2 with a lot of optimism. And this is shared by both, the market analysts and various crypto experts. The FUD of bans in some major world markets is mostly gone. Naeem Aslam, a Chief Market Analyst at ThinkCoin explains:
“If you look at the Bitcoin price action, a lot of the bad news is already priced in. Any new development which is negative for the cryptocurrency is considered only as an extension of the current event.”
“This means that it is failing to produce any meaningful downside move for the Bitcoin price.”
Brian Kelly of the Brian Kelly Capital and a “Fast Money” contributor spoke of Q2:
“Q2 is always good for Bitcoin. There will be a significant rally here if seasonality brings tailwinds.”
He also mentioned the Q1 FUD:
“We’ve gone to the extreme of the regulation which is South Korea thinking they’re going to ban it, the U.S. talking about everything being a security, to walking it back. You’re seeing a shift again in that type of thing. I think most of that’s behind us.”
We share this outlook. Bitcoin (and cryptocurrency in general) is a new commodity. If we look at a small section of its history, it is easy to panic. But if we compare it to a larger chunk of the data we now have – we can see a pattern.
After the incredible upwards ride of last year, it is easy to forget that at the start of 2017 Bitcoin was priced around $1000. And today, only 12 months and a massive drop later, it still costs nearly 7 times more.
What do you think will happen to Bitcoin’s price over the coming months? Let us know in the comments below!