Report suggests cryptocurrency market could face 90% correction
An article from CNBC has picked up on a report created by investment bank GP Bullhound called “Token Frenzy: The Fuel of the Blockchain.” The report’s main author, Sebastian Markowsky, believes that cryptocurrencies will endure a 90% correction within 12 months. “Correction” is a term for a type of market trend where prices experience a short-term drop. A 90% correction would be seen as very heavy and extremely damaging to the cryptocurrency market.
Virtual currencies have experienced volatile price fluctuations in 2018 and their number has grown considerably: At the time of writing there are at least 1,777 cryptocurrencies listed and the total market cap is over US$429 billion. Well-known VCs such as Bitcoin, Ethereum, and Ripple still lead the pack in terms of market cap and would be the most likely contenders to weather a 90% correction storm. In the last month alone, Bitcoin has been recovering from a low price of US$6,571 on April 6 to the latest close of US$9,135.
Spreading words of doom and gloom in the cryptocurrency world is common activity. But with tokens and coins being released on a daily basis, fraudulent ICOs frightening off investors, and the constant threat of regulation looming, it wouldn’t be surprising if elements of this latest report end up becoming reality.