Will Crypto Market See 2019 Scenario Once Again?

Will Crypto Market See 2019 Scenario Once Again?

The crypto market is declining sharply, with the currencies losing a large portion of their market cap. This raises concerns if the market would see the same scenario of 2019, where the correction wave has wiped the market’s gains.

The cryptocurrencies have lost around $15 billion of their market cap over the past 24 hours, after traders decided to return to the stock markets unceremoniously, according to a report published on Bitcoinist website.

Price movement not raising concerns

Some analysts expected that 2019 scenario would not be repeated, explaining that the cryptocurrencies are moving in straight lines, which is not raising worries.

On the other hand, other analysts believe that the correction seen by altcoins is accelerating, and thus wiping the gains recorded this year, which is almost the same scenario of 2019.

The crypto market cap totaled around $127 billion in early January 2019, and then rose to about $ 193 billion at the end of the year, propelled by the gains made by the world’s largest cryptocurrency Bitcoin.

The cryptocurrencies have witnessed a positive performance since the beginning of 2020, leaping nearly 36%

Traders and analysts have already noticed similarities with 2019, if the correction wave continues heading deeper.

Analysts said if this is the peak of the cryptocurrency market in 2020, there would be another rally but below this level, which indicates “we are still in a bear market”.

An analyst said he was “confident that the market will resume its bullish momentum once hitting another low, which would be higher than the previous one.”

Over the last 24 hours, the Bitcoin declined 3.68 percent to $9,052.73.

Earlier, Cryptolydian reported Binance CEO as saying the Bitcoin price has not yet adjusted to the imminent halving event.

Changpeng Zhao indicated that the world’s largest cryptocurrency will gain more momentum in the near term.

He added that the halvings have had a significant impact on the Bitcoin price. However, the CEO clarified that historical events do not necessarily project future circumstances, but said miners would spend nearly twice as much to mine one currency. 

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.