Amid the most recent collapse of the cryptocurrency market, investors and people, in general, have been left wondering whether there will ever be a recovery, or if prices are going to continue their downward trend.
For example, Bitcoin surpassed the $20,000 plateau last December, its highest point ever. Now, the most prominent digital token on the market is hovering around $6,500. It’s not just about Bitcoin: altcoins have been severely affected as well.
All Numbers Are in Red
Every major cryptocurrency’s annual numbers are in red: Ripple has lost 89% of its value since the calendar turned its page to 2018, Bitcoin fell 57 percent, Litecoin’s decline has been marked around 75 percent, and Ethereum’s collapse has taken 65 percent of its total price to begin the year.
Naturally, given the degree of the decline in the crypto market, stock with ties to it are beginning to feel the consequences, too: Overstock.com (NASDAQ: OSTK) is off 19% over the last three months, and Kodak (NYSE: KODK) is also down 45% for the same timeframe.
As a whole, the overall value of cryptocurrencies has collapsed by more than $600 billion since January 7, the day of its peak. The scenario may seem bleak, but according to experts, there appears to be light at the end of the tunnel.
Optimism Surrounds the Industry
Morgan Creek Digital Assets recently reminded readers and people with investments in cryptocurrency assets that the current collapse, while harsh from all angles, isn’t without precedents. The organization has reasons for optimism given that, since 2012, Bitcoin has endured more than ten drops (13, to be precise) of over 30 percent and three over 50 percent.
Additionally, Josh Fraser, who acts as the CEO and co-founder of the open-source blockchain platform Origin, recently predicted to the specialized site MarketWatch that the growth that the technology sector is experiencing, and the mass adoption of the blockchain technology and cryptocurrencies will be the primary factors behind a resurgence towards the end of the year.
Fraser stated that we are experiencing a “shift towards development in the blockchain and crypto space,” a crucial development because two of the most relevant elements that may fuel the market’s revival are “usability and pricing.” He defends that people that have been abandoning crypto assets will come back when they see “real utility,” a scenario that will help stabilize the markets.
Corporate and Institutional Interest is Still Intact
Despite its current downward trend, the crypto market hasn’t lost a shed of corporate interest: in fact, it is growing by the day. On top of that, institutional interest in crypto assets is growing exponentially as well.
The current prices of cryptocurrencies are not yet reflecting institutional interest, but they will, and very soon. Prominent financial groups and organizations such as Morgan Stanley and the Citigroup are developing and launching Bitcoin products that demonstrate that the sector’s interest in cryptocurrencies is intact.