Bitcoin, the largest digital currency by market capitalization, is in dire need of a lengthy recovery after shedding 80% of its value last year. However, it remains to be seen if the crypto and other digital currencies can muster substantial recoveries in 2019.
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.
Among the issues plaguing bitcoin ;last year were 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.
“Due to the intensity of previous sell-offs, there exists a strong possibility that the price of BTC and other crypto assets drop below key support levels in the short term,” reports CCN. “Some analysts see the dominant cryptocurrency declining to its 12-month low at $3,122 in the last phase of the year-long bear market before recovering by the year’s end.”
Bitcoin volatility, which ebbed significantly earlier last year, could continue doing so if the cyrpto’s price’s continue faltering.
What’s Next for Digital Currencies?
A lot needs to happen to foster new bull markets for digital currencies.