Explaining the Dip: What caused the recent Cryptocurrency Downturn.

Cryptocurrencies set striking records in the year 2017. The values of major cryptocurrencies, especially Bitcoin, ethereum, and ripple sky rocketed so high that those who has invested in them earlier felt on the top of the world and those who hadn't felt that they have missed out. On December 17, 2017, the value of bitcoin had risen to an - all time high ($19,850) as had several other major cryptocurrencies.

Several warnings were given as to why people should avoid investing in cryptocurrencies on the premise of the volatile nature of the market.

However,2018 has not been a good year for the market so far. Having reached a valuation of $834 billions, as of January 2018, coinmarketcap.com reported that the market witnessed a drastic plunged of about 66% loosing over $553 billion. Bitcoin recorded a huge loss of over 50% in February, with valuation dropping below $7,000. Ethereum and ripple also suffered similar drops, both recording losses of over 40% during the same month. This plunge has put many into a state of panic, could be this where a bubbles burst? Is this what so many experts warns about? Are we seeing the end of cryptocurrencies? " The market before was clearly overheated", points out Miko Matsumura, co founder of Every coin. "The only fear in the market was fear of missing out". These spectaculation led many to rush into the market, resulting in price inflation. However, he believes that the market is currently stabilizing, which was the reason for plunge.

However, there is reason for market optimism. As of March 3, the cryptocurrency market stands at $461 billions. Bitcoin is currently standing at a little over $11,300. As of February 12, the cryptocurrency market had experienced a surge to $429.5 billion. Bitcoin is currently rising from its initial standing that was below $6,800, likewise, ethereum and Ripple have both increased in value more than 20%.
Source:Forbes