Will the bitcoin and crypto markets experience a boom like in 2017 in 2020?
Will the bitcoin and crypto markets experience a boom like in 2017 in 2020?
Since the massive rise in Bitcoin and crypto in late 2017 and the resulting crash in 2018, everyone has been waiting for a return to dizzying heights. In reality, however, it may take a little longer than it did after the dotcom bubble burst.
Bitcoin’s slow development
A look at previous years can give us an indication of what will apply to Bitcoin prices in 2020. Admittedly, the scene is completely different now. There are now also futures products that allow investors to shorten the asset.
The ups and downs of previous years can be used to forecast the future should the history at BTC repeat itself. Full-time trader “Crypto Michaël” compared the years:
The year 2013 was similar to 2017.
The year 2014 was similar to 2018.
The year 2015 was similar to 2019 with the parabolic move.
The years 2019-onwards will normally be similar to 2016-2017.Let's rock & roll together.
— Crypto Michaël (@CryptoMichNL) January 3, 2020
The year 2016 was very similar – with a slow start, then a high in the middle of the year, followed by a correction towards the end.
In 2017, bitcoin prices rose by almost 1,500%. So the hope is that 2017 will repeat itself in 2020 . It is unlikely that there will be a pump of this size – however, the pattern could repeat itself and lead to a new all-time high before the end of the year.
Crypto enthusiast “Tommy Mustache” comments that it took a while for the markets to recover after the dotcom bubble burst:
“You don’t have to be a genius or a good investor to agree with the historical timeline above. Just like after the dotcom bubble burst in 2001, it took about 3 years for the market to recover and slowly start to pick up again. ”
Back then, the dot-com industry was worth trillions – the crypto industry, however, peaked in January 2018 at $ 800 billion.
It may take several years for the crypto markets to add up to a trillion dollars again. After all, it took nine years for the Amazon stock to reach its all-time high again.
To reach a trillion-dollar market cap, Bitcoin would need to be quoted at around $ 55,000. This is unlikely to happen this year, but a five-year timeframe doesn’t seem far-fetched.
Crypto market cap still down 75%
Today, the total crypto market cap hovers at around $ 200 billion. It has dropped 75% from its peak, despite Bitcoin’s dominance in 2019.
Last year, market cap increased 50% from $ 125 billion to $ 190 billion, so repeating it this year would increase it to $ 400 billion. That’s almost half the trillion-dollar level, and it’s likely that future growth will be slow and steady.
In short: The days of wild, FOMO-driven pumps and dumps are probably over as crypto has matured and has been growing similarly to the Internet in the past few decades.
