Cryptocurrency Will Recover But It Will Take Time
At the beginning of the year, there was a slight recovery among the top coins. ETH started trading in green carrying BTC, XRP and almost every other coin along. However, within the last few days, the price of cryptocurrencies have fallen significantly against the USD. Things aren’t looking bright and there is no guarantee that the prices will trade in green this weekend.
The 2017 bull run was fueled by the rise in the number of retail and single investors in the industry. Most of these investors were from Japan and South Korea. The demand for cryptocurrencies was so high that Bitcoins premium went as high as 20% to 30%. At the time BTC reached a global all time high of $19,500, it was trading at $23,000 in South Korea. Investors started investing heavily in cryptocurrencies. It was difficult to watch your neighbor get rich from cryptocurrencies and not be tempted to invest yourself.
In the fall of 2017, New York Times reported that a single mother in South Korea, Kim Hyon-jeong, invested $90,000 in cryptocurrencies. $25,000 out of that amount was from loan. Many people in South Korea invested all they had in cryptocurrencies. This is why the fall in the market hit South Korea the hardest. Kim lost almost all the money she invested and will have to spend the next 10 years of her life paying off the bank loan. Expressing her disappointment, she said:
“I believed that cryptocurrencies would be the only breakthrough for ordinary hard workers like us. I believed my family would finally be able to escape the hardships we face and enjoy an improved standard of living but things didn’t turn out as planned.”
Millennials Showed Strong Faith In Cryptocurrency
Whether millennials in Asia want to admit it or not, a full recovery isn’t coming anytime soon. Retail traders will have to recover psychologically and there is no way they’ve done this between November and January. It’s not easy to predict when the recovery will come but it should take at least 62 weeks before it will start recovering fully. Most major corrections take about one year and three months.
This bear market may take longer to recover because there was a lot of mainstream media coverage during the bull and bear market. Right now, the industry needs to focus more on other blockchain use cases and application of cryptocurrencies rather than on price.