The cryptocurrency market is so volatile, that the changes of a rate of separate currencies may reach tens or even thousands percents during a year. The investors and especially the traders should look closely at the rate dynamics of separate coins, as well as the market itself. In this article we will run through such term as cryptocurrency rate dynamics and will take a closer look at the yearly graph of the market and at TOP-3 coins:
(please, click the topic to scroll down to it)
- General market dynamics of the year
- Bitcoin dynamics
- Ethereum dynamics
- Ripple dynamics
- The main reasons of the cryptocurrency market volatility
- Expert’s opinion for 2019
If we go back in time and take a closer look at the general capitalization of the cryptocurrency market we may notice a the great difference between cryptocurrency rates in January and December in 2018.
The beginning of 2018 shocked everybody with its maximum volume of the crypto market capitalization which almost reached 828 billion dollars. After which decreased to 330 billion dollars, which is almost 3 times lower than the historical record. Apparently, that was only the beginning, but first things first.
The first week of 2018 showed the most rapid growth for the entire history. The capitalization grew up by 200 billion dollars for a week, on the 7th January there was a historical maximum of 828,6 billion dollars.
Such high growth was caused by the altcoins’ rapid growth, after what Bitcoin showed its maximum on the 17th of December and then began to fall. For the next three days (till the 10th of December ) the market awfully decreased and reached the mark of 672,6 million dollars . During the period from 10th till 13th January the capitalization grew up to 744 billion dollars.
But after that, a prolonged correction started, which unfortunately continues up to date.
The 31st of January 2018 the capitalization decreased to 515 billion dollars.
In the first week of February the mark showed a rapid decrease and on the 6th of February the capitalization decreased to 283,6 billion dollars.
This event was followed by a two week period, which made many investors believe that the correction was over and on the 20th of February the capitalization was almost 510 billion dollars. The spring was followed by bad news:
– ban of cryptocurrency advertisement in Google and Facebook
– ban of ICO in China
That was the beginning of the second loop of correction which lasted till the 11th of April 2018 at that day the capitalization was 266 billion dollars.
On the 12th of April the market started to go up. As many experts thinks that the main reason was the filing tax returns in USA. This tendency remains marked till the 5th of May 2018 at that day the capitalization was 464,7 billion dollars.
The summer was a relatively calm period for cryptocurrency. In the first two months the capitalization was between 200-300 billion dollars, but on the 14th of August it fell to 194 billion dollars.
However, the fall of 2018 became the point of return for the whole market. The capitalization fell from 228 billion dollars to 138 billion dollars for three months. If in September the rate was more or less stable, then the November has been marked by a loud fall. From the 14th of November the market began to crash and on the 16th of November the capitalization was 102 billion dollars.
The first cryptocurrency started 2018 with the rate of 14 thousand dollars and the total capitalization of 235 billion dollars
After that the winter rate raised twice:
- on the 3rd of January $15 331 (the capitalization is 260 billion dollars)
- on the 6th of January $17 010 (the capitalization is 285 billion dollars)
This year it was the highest rate which was followed by a prolonged correction, which is still going on.
Till the end of January the coin decreased to $10 255 with the total capitalization of 172,6 billion dollars. Till that moment the vast majority of investors fixed the income at least partially (those who bought at the end of November or December, fixed the loss). Many experts expected the nearly 50% correction to be the maximum and waited for reborn of positive trend in the near future, but the first week of February was marked by a rapid fall of the rate till $6 226.
After that the growth started which made many participants of the market believed in a trend reversal. Looking at the chart until the 5th of March 2018 we might think that the correction was over since the rate of the coin raised by almost 2 times and amounted $11 452 with the capitalization of $193,5 billion. On the 18th of March the rate was $7 633 (the capitalization $129 billion.).
After that the rate remained in stagnation and from time to time it went up to the $8 500 and falls till $5 900. The minimum rate of the summer 2018 was fixed on the 29th of June and was $5 914.
The period from mid September till mid November was stable and was marked by neither ups nor downs. However, since the 14th of November the total collapse of the market started which affected the capitalization of the first cryptocurrency. On the 17th of December the well-known Bitcoin set a negative record of 2018. The amount of its capitalization was $57 billion. In the outcome, the rate difference of the beginning of 2018 was bigger by 4 times than the end rate of the year and the difference between the max. and the min. rate value equaled 5.
After the New Year, the price of Ethereum reached dramatic heights. The historical maximum was fixed on the 13th of January with the rate of $1 371.
Until the 6th of February the rate fell to $719. After that there was a period of growth and the coin reached the $1000 mark. On the 17th of February the rate of ETH was close to $973.
It was followed by a two month period of contraction, which stopped on the 6th of April on the mark of $367. The ethereum chart for the whole month was positive, on the 5th of May 2018 the coin rate was $820.
But after that the chart went down and on the 15th of August 2018 the ETH rate was $284.
Many people have decided that Ethereum couldn’t go lower. However they were mistaken. Since the 7th of December fixed not only a yearly negative record but a historical one. The capitalization of digital currency was equal to $9 billion and a coin was traded for $87,53 or 0,025 BTC.
The end of the year was not that successful for Ethereum. The difference between the rate of the beginning of 2018 is almost 6 times more than the final rate of the year and the difference between the max. and min. rate is 11.
On the 4th January 2018 the historical maximum was fixed on the $3,81 mark.
After that the rapid rate correction followed, since many investors wanted to fix their huge profits.
On the 6th of February the coin rate was $0,67. After that the rate of Ripple in 2018 crossed the mark of $1 for a few days. Thus on 17th of February the rate grew to $1,22. Furthermore the downward trend followed, which lasted till the 10th of April when the rate fell to the mark of 48 cents.
Then the rate of the coin (as well as with the rest of the market) was growing for the whole month and on the 5th of May it reached the $0,91 mark.
The rate of Ripple for the whole summer was slowly decreasing and only on the 20th of September began to grow rapidly and on the 22nd of September the price per one coin was $0,59.
The collapse of the cryptocurrency market didn’t hurt much the rate of Ripple unlike the other cryptocurrencies. In contrast, Ripple during not the best period for the market won the second place by total capitalization. And apparently will finish this year taking the second position without giving way to Ethereum.
As you may see, the rate dynamics of 2018 is negative. There are many reasons for volatility of the crypto market, but the major are few:
- the lack of government regulation;
- the instability and small capitalization (in compare to traditional financial markets);
- the lack of binding to the physical goods, which has material value;
- the lack of the real market value;
- the human factor (a large number of non-professional investors who by their actions discredit the situation on the market).
It is actually difficult to predict in the industry of cryptocurrency. We will tell the experts opinion on the rate dynamics in 2019-2020.John – – McAfee believes that Bitcoin will become a new financial standard and everyone should accept that. His forecast about the rate of Bitcoin is the most bravest above all, McAfee believes that 1 BTC till the December of 2020 will cost more than $1 million.
– The Fundstrat analytics team believes that the rate of Bitcoin in 2019 will be equal to $25 thousand.
– Mike Novogratz, CEO of Galaxy Digital, believes that the start of Bakkt and Fidelity Digital Assets platforms will affect the entry of new investors into the cryptocurrency market. According to Mike`s opinion, now the most important point of resistance is the mark of $ 3,880. If we overcome it, then the rate may reach $ 9,000 till the New Year.
The rate cryptocurrency dynamics is so changing, the industry is still young and volatile. The last 12 months were filled with a lot of events: the historical maximum was recorded, almost 80% throwback, the ban of advertisement,the regulators, for the first time cryptocurrencies become an agenda at G20. A number of respected experts predicts the great future for the industry and an early resumption of bull trend on the market. So we’ll see and we will provide you only with verified news and with useful information from the crypto world.
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