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A year ago today, December 17 2017, Bitcoin euphoria touched its roof and hit a record price of $20,000 per unit. Twelve months later, BTC/USD is 83.5 per cent from its record high, and 76 per cent below its 2018 opening price. What now?
It was a dream come true for many people, an economic revolution like no one seen since the industrial revolution, just today. Many new millionaires, even billionaires, but everything imploded and the king of cryptocurrencies collapsed, taking with it most of the altcoins in the market.
Bitcoin closed 2017 with an over 1,350% rally, but the reality said that BTC closed last year at $13,880, 44 per cent down from its peak of $20,000 on December 17.
Then, the decline extended throughout 2018, with fundamental news like the ban in China, regulation problems, scam scandals, the rejection of an ETF for Bitcoin in the United States and the capitulation of BTC short-term bulls made the rest.
BTC/USD is on track to end its three-year in 2018, after gaining 42 per cent to $429.78 in 2015, 123 per cent to $958.24 in 2016, and a spectacular 1,350 per cent in 2017, the pair is trading 76 per cent down in 2018. It will not be the worst year for Bitcoin, as well as 2017 wasn’t the best one.
Just as a matter of fact, 2017 was just the third best year for Bitcoin. In 2010, the crypto king rallied 9,567 per cent, and in 2013, the increase was a more than decent 5,993 per cent. These two jumps were followed by another 1,410 per cent rally in 2011, but a 63 per cent decline in 2014.
What does that mean? Volatility has always been a common thing for Bitcoin, long-term escalades have always followed massive rallies or significant declines. Will it happen the same again in 2019?
Some people say yes, other people believe that Bitcoin is death, as Teen Bitcoin millionaire Erik Finman said.
Teenage Bitcoin millionaire Erik Finman said in an interview with MarketWatch that bitcoin is pretty much dead in the long term. Finman said he could see another bull rally, or even two, but the long term outlook is bleak.
Finman, who became a millionaire after investing $1,000 he got from his grandmother during the Bitcoin euphoria that drove BTC to $20,000 last year, said that Bitcoin would not last.
“Bitcoin is dead, and it’s too fragmented, there’s tons of infighting I just don’t think it will last,” Finman told MarketWatch. “It may have a bull market or two left in it, but long-term, its dead.”
“Litecoin has been dead for a while,” Finman added. “It is like when the sun is going down, and there’s that eight minute period just before it goes dark. Litecoin is in its seventh minute.”
On the other hand, Finman believes that those cryptocurrencies that are project-based have a better chance of success. Crypto assets like Ethereum or Zcash are his options.
Bitcoin celebrated its first $20,000 anniversary with a 9.45 per cent rally against the US Dollar on Monday; the pair closed its first positive day since December 13 with a jump that put the BTC/USD to seven days highs at 3,585.95.
BTC/USD is now testing the 20-day moving average at 3,585.00. Technical conditions are improving to a better upside condition.
“BTC, therefore, could witness a corrective bounce ahead of the year’s end,” says Omkar Godbole, FXStreet and Coindesk analyst. According to his view, “a drop to the psychological level of $3,000 remains on cards as long as BTC is trading below the crucial resistance at $3,633.”
However, “a break above $3,633 would validate the falling wedge breakout seen in the daily chart and allow a rally to $4,000. A violation there would expose next resistance lined up at $4,410 (Nov. 29 high).”
There are more than 50 million unique Ethereal wallet addresses in the world according to data from the ETH BlockExplorer Etherscan.
Last Saturday, December 15, 168,506 new unique crypto wallets came into the Ethereum network to a total of more than 50 million globally.
However, the number of active Ethereum addresses has been declining since its peak of around 1.1 million in January 2018 to 328,400 on December 16.
Blockchain.com also reported that the number of unique Bitcoin wallets was 364,387 on December 15, down from around 1 million also in January 2018. Active BTC addresses were 461,000 on December 16.
Remember that the cryptocurrency market gained over 17 million verified users in 2018 according to a study made by the Cambridge Centre for Alternative Finance on December 12, as published previously.