In late 2017, bitcoin flirted with $20,000. On Christmas Eve 2018, the largest cryptocurrency by market value was struggling to stay above $4,100 underscoring the bearish pall that has hung over the crypto space for much of 2018.
On Wednesday, Bitcoin’s price was under $4,000 at $3,842.94, gaining slightly at 0.79 percent within the last 24 hours.
While bitcoin’s current levels are well off its lows for 2018, some market observer’s believe the prospects for a bitcoin rally in 2019 are murky.
Until the cryptocurrency that was once the toast of the town can resuscitate itself and get out of its latest correction, it calls to mind market bubbles of the past that elevated investors into a state of euphoria before unceremoniously popping and crashing down to earth.
In 2017, buyers could not get enough of bitcoin and other digital assets, but theme has sharply reversed in 2018.
“This year has shocked many crypto investors after 2017’s fear of missing out (FOMO), which boosted prices all the way to a record high of $19,511 in December 2017, turned against them,” reports Kitco News. “The biggest losses came in January, March, May, August, and November, with prices eventually hitting the lowest annual level of $3,215 per bitcoin, according to Kitco’s aggregated charts.”
Lingering Problems
Among the issues plaguing bitcoin this year are the ongoing unwillingness of U.S. regulators to approve bitcoin-related exchange traded funds as well as data indicating that mainstream acceptance and adoption of the digital currency are declining.
“Aside from extreme views by bitcoin bulls and bears, the overall trend is that bitcoin will see more headwinds in 2019,” reports Kitco. “Bitcoin seems to be stuck in a bear market as cryptos wrap up a very disappointing year, said Kitco’s senior technical analyst Jim Wyckoff.”
Bitcoin volatility, which ebbed significantly earlier this year, could continue doing so if the cyrpto’s price’s continue faltering.
“The bitcoin space has already seen lower volatility from August to November after prices fell below $8,000,” according to Kitco. “Another bottom for prices could be $1,200 next year, according to U.S. Global Investors CEO Frank Holmes, who cited legalization challenges as the main obstacles holding cryptocurrencies back.”
For more information on the cryptocurrency market, visit the Bitcoin category.