The market of cryptocurrency behaves unpredictably in 2018. The started rally was accompanied by two strong drawdowns, and we cannot say that both of them occurred in the light of negative news, definitely not apocalyptic – it is the summoning of two players of the cryptology – Bitfinex and Tether, as well as negative statements of the Indian finance minister about the crypto currency bank and its regulation.
At the peak, the market almost reached the mark of $800 billion, followed by a rapid collapse down, currently the market has almost felled down to a mark of $390 billion.
There are a lot of rumors about the behavior of the market, some say that large institutional investors have decided to enter the market at lower prices in this way, some make references to the upcoming Chinese New Year, there are those who believe that this is because of the American filing of the first tax returns and the necessity of payment of taxes on received crypto incomes. Panic moods of the majority of market players are obvious, a lot of traders who are not ready for such drawdowns are selling tokens at a loss, fearing a further fall.
According to our estimates, the market may still fall to $300 billion in capitalization before the growth starts again.