Crypto Market Plummet Hits Harder than Dot-Com Crash
The crypto world is facing a peak-to-trough decline of 78% according to Nasdaq Composite Index. There has been evident dents in cryptocurrency market values which mark a steep decline of 80% from an all-time high price back in January. Such a sharp downfall was last witnessed during the Dot-com crash in 2000.
A Steep Path Ahead
The recent cryptocurrency volatility has left traders stunned as many were predicting a revolutionary change in the financial world. Similar to the internet stock boom that occured two decades ago, today’s cryptocurrency market may be facing similar peril.
According to recent trends, crypto enthusiasts had overlooked the risks of volatility and held high hopes that currencies such as Bitcoin would soon become digital gold alongwith its underlying blockchain technology offering the potential to transform every industry sector from finance to healthcare. However, these excessive market hypes have ultimately led to a rise in market manipulation, fraudulent activities, cyber hacks, and more.
Crypto Bulls Hold A Different Viewpoint
While the financial world is currently buzzing with recent comparison to the Dot-com crash, Crypto bulls, however, hold a different perspective. They have dismissed negative comparisons by stating that Bitcoin had suffered such volatility in recent years and had successfully rebounded itself. Hoping for a grand comeback, crypto Bulls suggest that with the advent of cryptocurrency, a considerable change on mainstream society took place which was not the case looking back on the Dot-com age. Moreover, the Nasdaq composite recovery has also gained new heights after fifteen years.
It is indeed true that cryptocurrency has initiated a huge impact on the financial sector globally however, 2018's underscore progress has been quite rough overall. The massive turmoil within the cryptomarket was led by the world’s second largest cryptocurrency, Ether, which faced a steep fall of 5.2% falling to $172.41 at the early hours in New York. This has extended the month’s overall retreat to 39%. Following in its footsteps, Bitcoin fell by almost 3%, leading to an overall downfall in the market cap to $187 billion throughout the last ten months.
A Ray of Hope
However, amidst a thickening cloud of uncertainty, there may still be a silver liningl as predictions suggest worldwide economy ramifications may be minimal. However, the crypto market has thus far lost approximately $640 billion after peak prices in January. This is a far worsened scenario than that experienced during the Dot-com bubble. As digital assets are tumbling, a growing disappointment among crypto bulls is expected to continue with crypto-fiat links also weakening.