Will cryptocurrency prices rise again? [Ōhira]

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Fx history from 2009, cryptocurrency history from 2015. Utilizing cryptocurrency investments and past experiences, delivering cryptocurrency information on major newsletter sites and investment sites. Participates in numerous individual investor networks and expands knowledge gained from many investors. Running a beginner-friendly cryptocurrency investment information site since 2016.

Blog:The Future Potential of Cryptocurrencies - Investment Methods for Beginners to Earn

*This article is a reprint and revised edition of an article from FX Mastery.com, March 2019 issue. Please note that market information described in the text may differ from the current market.

2018 Price Decline Situation

The cryptocurrency market, which was said to be a bubble in 2017, faced a tough environment in 2018 with a downward market. At that time, the total market capitalization (overall trading value of cryptocurrencies) was about 90 trillion yen, but has fallen to around 12 trillion yen. In addition to cryptocurrencies, the stock market also declined, with major US company Facebook stock price dropping nearly 40%.

Chart ① is the Bitcoin price chart from December 2017 to December 2018. Bitcoin, which hit a record high of 2 million yen in December 2017, fell to about 400,000 yen by December 2018.

In the 2017 market, the Chicago Board Options Exchange (CBOE), one of the world's largest futures exchanges, handled Bitcoin futures, among other positive news. However, in my view, at that time it wasn't so much the news itself as the impression that a large amount of money flowed into currencies such as Bitcoin, and continued to swell.

Table ① summarizes the price status of major cryptocurrencies. Except for Bitcoin, altcoins had relatively small market capitalizations to begin with, so they experienced sharp drops after large increases.