Analysts: We could be witnessing a repeat of 2017 crypto boom
It all started with Bitcoin mid-April and investors could already tell that the yearlong downtrend across the cryptocurrency market had come to an end. Somehow, Bitcoin always takes the lead. But why is that so?
From 2017 till February 2019, investors watched in horror as the cryptocurrency market crumbled down. There were even rumors that the projects could have been Ponzi schemes and the developers had abandoned them after raising money in 2017.
Going by the outcry of most investors, everyone was praying that the digital coin would miraculously go back to its lost glory. After hitting its $20,000 mark in December 2017, investors poured in lots of money into the project only to come tumbling down some months later. The downfall was too fast that in a year the digital coin had lost more than 75% of its value. This meant loses for the investors.
For example, if an investor invested $100,000 into Bitcoin at a price of $20,000 in 2017, it means he could have bought about 5 Bitcoins. By early this year the prices had gone to as low as $5,000 and selling the Bitcoins at that rate would have given the investor only $25,000 which constutes a 75% loss.
It is now time to correct the wrongs!
According to analysts, following the upward surge of Bitcoin over the last two months, other cryptocurrencies have followed suit and we could be seeing a repeat of 2017 skyrocketing or even better performance by the digital currencies.
The price of Bitcoin has already seen a double increment over a period of over a month and very soon it is expected to get past $8,000. Even if there fears of stagnating at $8,000 for a while due to the rate at which the prices have risen, the value of the digital coin is expected to hit $10,000 by mid this year.
Other cryptocurrencies like Ethereum and Ripple are following suit and their prices have also recorded positive movements though at a slower pace compared to Bitcoin.
What investing now would mean to investors
Going by the current market trends, investing in a cryptocurrency at the moment would be a great opportunity. The markets have already shown the potential of getting to unprecedented heights and if the same was to be repeated this year, an investor that made his/her investment at the current prices would stand the best chance to make the most out of the market prices.
Some of the most promising crypto coins are Bitcoin (BTC), Ethereum (ETH), EOS and Ripple (XRP).