Cryptocurrency News – Can the cryptocurrency market regain older heights?

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Up until now, the bounce backs in the cryptocurrency market have been sold into. None of the bounce back has been able to sustain. Currently, Bitcoin (BTC) has bounced from $ 3200 to around $ 4000. It has been partially sold into as well. Bitcoin (BTC) is currently trading around $ 3800. The question which remains is whether there is any scope of the cryptocurrency markets attaining older heights.

Can the cryptocurrency market regain older heights?

At the peak, the cryptocurrency market cap was around $ 830 billion. Currently, the cryptocurrency market cap is around $ 130 billion. Thus, in one year alone, cryptocurrency markets have lost around $ 700 billion in market cap. The problem is that while some of the cryptocurrencies might recover and even reach newer heights but the same cannot be said about the majority of the cryptocurrencies.

The truth is that at the peak most of the cryptocurrency prices were inflated beyond fundamentals. There was no rationale for the cryptocurrency prices to be at those levels. Many of these cryptocurrencies had surged multifold. They have corrected more than 90%. Thus, in order to for them to reach newer highs, they have to grow by more than 9 times. This is certainly not possible for each and every cryptocurrency.

When it comes to the mainstream cryptocurrencies, there is some possibility that cryptocurrencies like Bitcoin (BTC) might be able to reach newer highs. However, this will not be easy. It will certainly not happen in a year. It will take multiple years for Bitcoin (BTC) to reach newer highs if at all. On the other hand, there are some cryptocurrencies like Ripple (XRP) whose fundamentals have improved significantly over the past one year. It has corrected from $ 3.52 to around $ .38 currently. Thus, there is scope for improvement in these cryptocurrencies.

The truth is that the cryptocurrencies which are experiencing a surge in the usage of their blockchain like Tron (TRX) might be able to rise and make new highs. The ray of hope looks pretty slim for the other cryptocurrencies which do not have actual blockchain usage. In such a case, the investors who are stuck at the higher levels might never be able to see their capital recover. That is why; it is actually pretty difficult for the broader cryptocurrency markets to retain older heights.

The cryptocurrencies which have stronger fundamentals will not only be able to reach their older heights but also surpass them. It is now more important than ever for investors to look at the fundamentals rather than buying the cryptocurrencies market wide.

About Manish 352 Articles
I am an avid crypto lover and a electronics & telecommunications engineer by qualification. I follow the cryptocurrency & blockchain industry closely to focus on the latest news & developments.

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