Willy Woo is a prominent crypto researcher and a whale. Well, he has some Bitcoin (BTC) projections to make for the year. Woo is optimistic that the 2018 cryptocurrency market falls won’t be as bad as that of 2014.
In fact, he recalled that in 2014, BTC price dropped to 90%, staying unchanged for years. He observed that there is a significant difference between the crypto market of 2014 and that of 2018. Let’s analyze Lee’s observations.
The Difference Between 2014 and 2018
Woo said that 2014 went down in history as the year the market suffered its worst correction. Indeed, it dropped to a shocking 90% and stayed down till 2017. Based on previous behavior of BTC prices, the expert suggested that BTC doesn’t recover easily. As a result, he says that nobody should expect BTC to rebound so easily. Woo connected the woes suffered by the market to the disaster of Mt. Gox, a one-time leading crypto exchange. In short, Woo said that Mt. Gox’s calamity pulled down the industry.
Impact of Mt. Gox
The thing is, the world’s leading exchange, Mt. Gox, handled 90% of the BTC transactions at the time. While it led the market, Mt. Gox paid no attention to its non-existent security measures and poor internal management. Sadly, this negligence cost it one billion USD. When the one billion dollar attack happened, the exchange filed for bankruptcy, shattering the market. It took the market two years to make a rebound.
Events in 2018
In contrast, in 2018, there have been concerted efforts geared toward luring institutional investors to the industry, Woo observed. U.S. leading exchanges such as Coinbase and Gemini have been in the vanguard. Also, other giants are teaming up to stabilize the volatility of the new asset class. For instance, the New York Stock Exchange, Starbucks, and Microsoft collaboratively launched an initiative. Indeed, the joint initiative, Bakkt, is to ensure that virtual currency is adopted the world over.
Truly, Bakkt is already out to achieve its first mission, finding trusted prices of digital assets. Experts say that the move will be critical in Exchange-traded Fund (ETF) approval.
The End of BTC Bear Market is Near
In August, Woo said, Bitcoin showed a 14-month dip of its monthly volatility rate. He said that it is typical of BTC to maintain this behavior during mid-term recovery. Nonetheless, it will then initiate a rally on the upside afterward. Though, he maintains market fundamentals are different now in 2018.
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