Are we still in a crypto bubble ?
In this article i will talk about the crypto bubble we are in right now and will compare to ancient cryptobubble, especially the one of 2013/2014.
Here is the graph of the total market cap of previous bubble :
We can see there that we went from aprroximately 1.5 Billion $ market capitalisation to 15 Billion in 3-4 months.
It's a growth of 1000% (which is quit huge). It endend with a very bad news, the Mtgox hacks where hackers stole 744 408 in february 2014. It's stopped the bubble there. Without that hack, maybe it would have been more than 1000 %
So where are we now ? :
The bubble started in march where we can see a growth of the volume on the chart. We were there approximately at 25 Billion $ and we are now at a total market capitlization of 115 Bn $. It's a growth of 460 % in 4 months. We still have no bad news and having a growing adoption of users. The ethereum and bitcoin network are starting to show sign of tiredness, but lots of improvment are coming !
In this one, this time, altcoin are more in front of the scene than the previous bubble where it was more about bitcoin. Lets look at Altcoin bubble in 2014 :
We can see here that altcoins represented only 2 Bn out of 15 Bn total marketcap (~13,3 %)
And now :
which represents 70 Bn out of 115 (~61 %). This time Altcoin are more in front of the scene, and it gives more stability to the market as it's not only about Bitcoin mainly.
To compare with the previous bubble, this is where we should be now :
I think we still have room to grow, but right now the market is taking a breack to get his breath back and grow more.
All the new incoming upgrade on the Bitcoin network will greatly affect the growth of the market.
I'll be happy if you share what you think about this bubble and what you think will happen in the futur !
i think many ppl bought cryptocoins to invest in companys [ICO] and thats the reason why the coin price rised.
Another point is, everytime an ICO ends the ETH price is falling.
Maybe i am wrong but i think the prices will going up as long as there are new companys collecting money for there startups.
Hum i think ICO are more a way for people who already have invest a long time ago in ETH, BTC or else to diversify their capital by buying new token at a rate supposed "cheap".
I don't know if there is a way to know if money from ICO are mainly invested with FIAT (ppl buy btc/eth/else with FIAT and invest in ICO) or if it's already ppl who own BTC/ETH/else. Would be interesting !
Looks like we are in a bubble. With Bitcoin not breaking well past 3,000 and holding those levels, I predict we will see a big pull back before we continue higher.
With all the newcomers in the industry, they will get spook when the market dips and cause a bit a short term panic, creating a great opportunity to buy more imo.
The pullback will be good for the market and make it a bit less volatile in the future. Also, I wouldn't be surprised if some governments try to take down the currencies in the near future or at least disrupt it.
All good for us because I don't see cryptocurrencies going anywhere.
Yes the pullback will put out of the market all the people that are not strong beliver and will give opportunity for strong believer to add more to their position. It will be a purge of panic seller and will give to the market the opportunity to grow at a steadily speed with no major drawback.
Why are you not seeing futur for crypto ? Governments will try to tax it, and of course some will try to shut it down. But it's international so it will be a stupid move to my opinion.