- Bitcoin recorded a 71.4% drop in 2018 and hit lowest at $3,222 in December 2018.
- Digital currency investors say the 2018 spike in price was inorganic and the drop was a healthy corrections.
- Analysts and Traders see the EFT application and other international development to affect price movement in short run.
The popular cryptocurrency, Bitcoin recorded a 71.4% drop year-on-year between January 1, 2018, and the same time in 2019.
Bitcoin, which recorded its highest ever value on December 17, 2017, at $19,783.06, experienced a volatile market in 2018, burning the hands of some traders especially in Africa, according to checks by Business Insider Sub-Saharan Africa.
About three weeks ago, the digital coin traded to its lowest in a year at $3,222.67. With this volatility in the market, African traders and analysts believe the currency may see a further drop in this new year.
The digital currency opens trading on the first business day on Wednesday, January 2, 2018, above$ 3,800.
In 2019, analysts and traders expect the digital currency to fall further owing to various market activities. Most of them believed this is the best time for newcomers to enter the market due to the low price level.
Business Insider SSA spoke with some digital currency analysts and traders at the first Luno meetup event in Lagos in December 2018.
Bear market to continue in 2019
Olaleye Awe, crypto-investor and trader, said the decline in the price of Bitcoin is a normal thing in any every market and a good time to buy. There is always a time to buy and sell. Time to expect a big drop or big high. It is just a normal market cycle.
“To be honest, we are going to be in the bear market in 2019, I doubt if there is going to be an all-time high in 2019.”
Generally, the bear market takes longer time and its a price market reaction. “You can buy small now and buy at a gradual market price considering the price level.”
Awe said the price spike of 2018 is inorganic and 2019 will see the currency growing organically. He advised newcomers to watch the market before moving in.
He said the EFT application earlier shifted to February and the Bate – physically backed bitcoin feature could kicks-tart a new bull run in the year.
Opportunities for new institutions to play in the digital market
Majesty Ibianga, a Cryptocurrency analyst, said this drop is a buying opportunity for newcomers and he sees a future spike in the price due to the EFT and other international development.
“The drop is healthy to correct the market and opportunity for new traders and institutions to come in at this time while retailer investors need to hand in and hold on the digital currency.”
Ibianga opined that 2019 and 2020 will be a better for the cryptocurrency market than 2018 as the digital currency will get more global attention.
Healthy corrections in the cryptocurrency market
For Lucky Uwakwe, Co-founder of Cheetah Africa and COO, Blockchain Solutions, the drop in the Bitcoin price over the year is a way to make room for healthy corrections in the market.
Uwakwe said the correction confirms Bitcoin and other digital currencies are actually real assets just as every other one.
In 2019, he said he expected to see cryptocurrency on much more positive trends.
At the event, Luno, a cryptocurrency platform in Africa, brought together industry experts, traders and buyers across the cryptocurrency markets to address issues like regulations and cybersecurity.
Owenize Odia, Country Manager of Luno Nigeria noted that the aim of the meet-up was to deepen the education of cryptocurrency to empower users to make informed decisions and protect them from internet criminals.