Cryptocurrency boomed at the end of the year 2017 and been in correction ever since. Bitcoin, the oldest of crypto has been fallen threefold but it is far from the doomsday prognosis of the end of the market. Indeed the volumes of the trade is low but there is a growing understanding that sooner or later crypto will hit the bottom and begin another FOMO moment. It depends of some known and covert events that will trigger the reversal in current tendencies. Of course persons interested in the growth – major holders of crypto assets and exchanges are here to proclaim the new era.
The digital money market reached its local minimum on September 12, says founder of the investment company Galaxy Digital Capital Management, Mike Novogratz. He stressed that the Bloomberg Galaxy Crypto (BGCI, not to be confused with Botanic Gardens Conservation International) index, which tracks the movement of digital money courses, is in the same zone as last year, before the industry’s capitalization began to grow to reach reach $ 830 billion.
This is the BGCI chart…I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout..we retraced the whole of the bubble. #callingabottom pic.twitter.com/EasTBYgjSj
— Michael Novogratz (@novogratz) September 13, 2018
As we can see from the chart Novograts prediction was not exact. Today the leading and most important crypto, BTC price tumbled anothe 3% while Bloomberg Galaxy Crypto Index fallen -3.97%.
It is not the first time prediction gone wrong. Earlier, the billionaire said that the cost of bitcoin would not fall below $ 6000 in the next 12 months, it began to grow in the long term. However BTC price reached 5600 shortly and the end of correction is still out of sight. Novograts is confident that the capitalization of digital money will again exceed $ 800 billion by the summer of 2019.
Market dominated by speculative power only can’t get out of correction. There is a need for real use of crypto besides it’s current place to be more valuable and outshift the bear momentum to make holding BTC more profitable than shorting it against the USD or USDT. It is also important to keep in mind the Asian currencies and stocks. Rapid devaluation of the yuan and wong can provoke another run for crypto despite all the protective measures taken by government.