Abstract:
The cryptocurrency market has been experiencing a significant downturn in recent months, with many investors concerned about the future of digital assets. In this paper, we analyze the current fall in the cryptocurrency market and compare it with the historical price movements of Bitcoin and Ethereum. We explain the reasons behind the recent market downturn, including regulatory crackdowns, environmental impact, and market manipulation. We then provide a detailed historical analysis of the cryptocurrency market from 2017 to 2021, focusing on the price movements of Bitcoin and Ethereum. We compare the current market conditions with previous market crashes and argue that the current fall in prices is a temporary setback for the cryptocurrency market. We also suggest that the current fall in prices may present a buying opportunity for investors looking to enter the market.
Introduction:
The cryptocurrency market has grown rapidly over the past few years, with Bitcoin and Ethereum becoming household names. However, the cryptocurrency market is highly volatile, and prices can fluctuate dramatically in short periods. In recent months, the cryptocurrency market has experienced a significant downturn, with prices falling sharply. Many investors are concerned about the future of digital assets and are wondering if this is the end of the cryptocurrency era. In this paper, we aim to analyze the current fall in the cryptocurrency market and compare it with the historical price movements of Bitcoin and Ethereum.
Current fall in the cryptocurrency market:
There are several reasons for the recent fall in the cryptocurrency market. First, there has been increasing regulatory pressure on digital assets, with several countries introducing stricter regulations on cryptocurrencies. China, for example, has banned all cryptocurrency transactions, while India is considering introducing a ban on all private cryptocurrencies. Second, there are concerns about the environmental impact of cryptocurrencies, particularly Bitcoin, which consumes a significant amount of energy to maintain the blockchain network. Third, there have been allegations of market manipulation, with some investors accused of artificially inflating the price of certain cryptocurrencies.
This year Crypto market has fallen about 75% from its All Time High Levels. There are interesting inferences we can draw when we look back into the history of crypto market. In year 2018, market fell almost to 88% from its high in 2018 and it took a year to reach the bottom. Another 2 years floating around the bottom level. It was January 2021 when it broke off the previous ATH and pushed to make new ATH (All Time High Level).
Historical analysis of the cryptocurrency market:
To better understand the current fall in the cryptocurrency market, we provide a detailed historical analysis of the cryptocurrency market from 2017 to 2021. We focus on the price movements of Bitcoin and Ethereum, as these are the two largest and most widely traded cryptocurrencies. We compare the current market conditions with previous market crashes and argue that the current fall in prices is a temporary setback for the cryptocurrency market.
Now let me bring you to what has happened during last one year or so, it seems markets have tanked including every other major players in Crypto Market
In 2017, Bitcoin experienced a significant price surge, reaching an all-time high of nearly $20,000 in December. However, in early 2018, the cryptocurrency market experienced a significant downturn, with prices falling by over 80% in some cases. Many investors panicked and sold their assets, leading to further price declines. However, over the next few months, prices began to recover, and by the end of 2018, Bitcoin had reached a price of around $4,000.
In 2021, the cryptocurrency market experienced a similar downturn, with Bitcoin and Ethereum prices falling sharply. However, we argue that the current fall in prices is a temporary setback for the cryptocurrency market, similar to what happened in 2017 and 2018. We believe that the long-term trend for cryptocurrencies is still upward, as more investors begin to recognize the potential benefits of digital assets.
Let’s review the chart of ETHUSD, this script has corrected upto 80% from its All Time High Levels. While the question remains would it not go further down ?? The same can’t be given, it may go another 80% down from this level. But who knows !! May be we start accumulating it slowly at this level instead of going heavy with all stakes.
Bitcoin Futures Chart Monthly Time Frame
Conclusion:
The recent fall in the cryptocurrency market has raised concerns among investors, with many wondering if this is the end of the cryptocurrency era. However, we argue that the current fall in prices is a temporary setback for the cryptocurrency market. We believe that the long-term trend for cryptocurrencies is still upward, as more investors recognize the potential benefits of digital assets
Some additional reference links related to this research:
- “Cryptocurrency Market Cap and Prices – Coinbase” https://www.coinbase.com/price
- “Bitcoin Price Index – CoinDesk” https://www.coindesk.com/price/bitcoin
- “Ethereum Price Index – CoinDesk” https://www.coindesk.com/price/ethereum
- “Bitcoin Energy Consumption Index” https://digiconomist.net/bitcoin-energy-consumption/
- “The State of Bitcoin Mining Legal Regulations Around the World” https://www.visualcapitalist.com/the-state-of-bitcoin-mining-legal-regulations-around-the-world/
- “Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction” by Arvind Narayanan et al. https://www.coursera.org/learn/cryptocurrency
- “A Brief History of Bitcoin Crashes” by Adam Hayes https://www.investopedia.com/articles/forex/121815/brief-history-bitcoin-crashes.asp
I hope these references are helpful for your research paper.