Willy Woo, a crypto-researcher, and respected investor have said that the Bitcoin correction in 2018 will not be like the slump in 2014, as the Bitcoin price fell by 90 percent in 2014 and remained in a low price range for several years. In essence, Willy Woo noted that the structure of the crypto market in 2018 is significantly different than it was four years ago.
2014 vs 2018: What is different?
In 2014, Bitcoin suffered the worst correction in its history as it fell 90 percent and stayed in a low price range until 2017. Based on historical data and the tendency of Bitcoin to take a year or two to recover from major corrections, some experts have predicted that Bitcoin will not be able to recover rapidly until the end of 2018.
Willy Woo emphasized that in 2014 the correction of Bitcoin was exacerbated by the bankruptcy of Mt. Gox, the now-defunct crypto exchange that completely dominated the bitcoin market. At that time, Mt. Gox handled 90 percent of the world’s BTC trades with poor internal management systems and virtually non-existent security measures. When Mt. Gox experienced a billion-dollar hacking attack and filed for bankruptcy, the cryptocurrency market fell.
However, over the course of 2018, a growing number of institutional investors have shown a growing demand for cryptocurrencies as an emerging asset class. It also shows how companies like Coinbase and Gemini are aligning their own service towards the traditional financial market. The message of the year is that the New York Stock Exchange, Microsoft, and Starbucks have launched a joint initiative called Bakkt to improve the usability and acceptance of cryptocurrencies worldwide.
One of the first initiatives launched by Bakkt in August is to support large crypto exchanges in the search for trusted digital asset pricing that experts believe it will increase the likelihood of Bitcoin ETF approval.
The Bear Market Is Coming to An End
Since February, Bitcoin has tested the $6,000 level three times, and in all three attempts, support levels have stood up to $5,800. Market conditions in 2018 are fundamentally different compared to 2014, and there are many variables such as Bitcoin ETF approval that could immediately reverse the trend of the dominant cryptocurrency. As Tom Lee pointed out, Bitcoin only needs ten days to reach new highs.