2018: Year of the Bear (Market)
According to the Chinese calendar, 2018 is the year of the dog..
However, according to the cryptocurrency market, 2018 looks more like the year of the bear...
2017 was the year of the gold rush, when Blockchain was the buzzword that could had opened every door and everyone was trying to buy some crypto.
The bull market reached its peak during the 1st week of January 2018, when most cryptocurrencies reached their all time high. Lisk registered its highest price on the 7th of January, where 1 Lisk was worth a whopping $39.31.
Prices of all cryptocurrencies were rising daily, seeing insane gains – an unsustainable situation. That type of growth was not healthy for the industry and the market was clearly overbought.
In fact, since the second week of January 2018 the trend reversed, with a quite expected bear market.
The bear market has been lasting ever since, wiping out most of the gains occurred during 2017. Well and alive, the trend is still continuing – Bitcoin recently reached its lowest price in 2018, at $3700.
The overall market is still going down, reaching lower prices on the daily basis. The prices of cryptocurrencies currently take into account one thing only: the bear market. There is no news good enough to make the price rise.
This becomes clear when analysing Lisk: since the beginning of the year the company has been moving steadily towards its objectives.
Not even all of them together managed to boost the price.
So, what does that mean? Is Lisk dead? Is the crypto market dead?
Don’t panic, my friends.
Lisk is alive and doing well, taking forward its agenda and working on future projects.
The regular updates and milestones completed are a clear demonstration of their efforts and their transparency. Notwithstanding a year long bear market, serious blockchain companies have not been intimidated by the overall situation of the market. In the end, cryptocurrency price is not a primary indicator of the success/failure of a company – there’s much better variables for that.
In addition, the long and cold winter in the crypto market might be welcomed by some, as these periods are the best cleaners for the sector. The bear market ended the ICO-mania, reducing the amount of companies raising funds through this practice. It also puts pressure on blockchain companies to deliver the promised products, pushing a sort of darwinian evolution whereby only real companies with products solving real-life problems will survive.
Will the bear market end soon?
As of today, there are no clear indications of an immediate recovery of the market.
The bear market has put companies under pressure, and only the strongest and most innovative ones have survived. Lisk has demonstrated to be among these companies, showing that negative market trends can bring out the best of companies that have the potential to take cryptocurrencies back into thebull market.