The general market sentiment around cryptocurrencies is far more positive now than it was the same time last year. A pullback was expected but very few in the industry predicted things would drop so low and virtually all gains would be wiped out. As markets appear to be coming off the bottom, crypto traders, analysts, holders and investors start looking towards the next big bull run and it could be a monster.
Back in early 2017 very few people knew what cryptocurrency was. A few had heard of Bitcoin but it was still something that computer geeks dabbled with their garages. Ethereum was trading at $15 and the rest of the altcoins were blips on the horizon. Total market capitalization back then was around $20 billion or around ten percent of what it is today.
Then came the bull run which saw prices explode and charts go parabolic. Things really started to ramp up in May 2017 when market cap quadrupled from January’s levels. The momentum carried on until the end of the year despite a lot of negative news and clampdowns in Asia.
As chief investment officer at Ikigai Asset Management and crypto pundit, Travis Kling, points out;
“In late 16 the vast majority of the world had no idea what any of this was or what its potential is. This time is different. Awareness is massively higher. That’s going to make reflexivity act that much crazier.”
Mainstream media has got hold of Bitcoin and it is now reported on regularly, though not always in a good light. TV slots on finance shows are now dedicated to crypto and the top assets have now become household names. There was even a movie released about crypto this week.
In addition to the massive increase in public awareness has been the institutional interest where the whales lurk. This is where the big money is and they are likely to be the catalyst for the next major bull run. Once it is initiated, which could still be several months away, the retail investors will return.
At the moment we are still in the accumulation phase which could last for a while yet. As some analysts have pointed out;
“The longer $BTC ranges between $5,000 to $5,200, the stronger support it becomes after the next push up. Though this equally becomes a stronger resistance if a breakdown occurs,”
Either way anyone that has had their eye on the space for the past year or two is likely to be quietly accumulating now in anticipation of a big surge that will dwarf what happened in 2017. To put some perspective on things this chart shows a compressed view of the past decade;
There have been no end of price predictions for the next market peak, and very few of them are lower than the last. Buckle up, it is going to be one helluva ride!
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