Is this the end of the boom on the cryptocurrency market?

Rohan Mathew

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Recent days have seen a significant decline for Bitcoin and other cryptocurrency projects. Investors around the world are wondering if this is the end of the boom in the cryptocurrency and Bitcoin markets. Will we have a repeat from a year ago?

It was in March 2020 that the crash took place, which brought a strong decline in the cryptocurrency and Bitcoin market. This was due to concerns about the spread of the coronavirus epidemic. – It is certain that we are dealing with a correction. Usually, the rate corrections on the chart are three-stage, where the second degree is a recovery from declines – experts explain. How will the course behave? This cannot be fully predicted as the cryptocurrency and Bitcoin markets are extremely liquid and volatile. According to analysts, one should bear in mind the fact that the correction may go deeper and may stop around $ 37,000 or $ 40,000. – This is due to the already mentioned 3 degrees of correction and the so-called the Fibonacci retracement, which determines the depth of the corrections – analysts explain. Interest in investing in bitcoin has recently been associated with the narrative in investors’ comments that it may be immune to the effects of inflation during the crisis caused by the coronavirus pandemic. In their opinion, Bitcoin may be the preferred currency of world trading in the future. However, there is a second scenario which assumes that the first cryptocurrency will collapse under the weight of speculation. In turn, the Reuters agency reminds that bitcoin was designed as a digital payment tool and so far has not found wide application in trade. Two aspects characteristic of this cryptocurrency contributed to this: high volatility of the exchange rate and relatively high transaction handling costs.

What about the rate of other cryptocurrencies? Ethereum is following Bitcoin, sometimes even worse. More and more information is appearing that it is starting to lose its current followers. The reason for this situation is to be high transaction fees. So cryptocurrency users and fans are looking for alternatives. One of them may be the Lisk cryptocurrency, the concept of which is very similar to the concept of Ether. – This is a younger project, but it also gained many supporters. Interestingly, the Lisk price chart has been behaving much better in recent days than Ethereum or Bitcoin – analysts at explain. This may be confirmed by the price lows which gradually appear higher and higher. However, the continued negative impact of declines in Bitcoin also affects this cryptocurrency.

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