Famous crypto-trader Chris Burniske shared his thoughts on the reasons for the current bearish trend on the cryptocurrency market.
Cryptocurrency market fell so hard in 2018, because the rate of its growth in 2017 did not correspond to the growth of cryptocurrency adoption in the world.
1/ Why is #crypto falling so much in 2018? Because in 2017 the market was up > 30x, but adoption (beyond investing & trading) wasn’t concurrently up 30x.
— Chris Burniske (@cburniske) 12 августа 2018 г.
According to Burniske, there is no need to seek excuses and explanations for each fluctuation of cryptocurrency. The main macroeconomic factor explaining the current situation on the market remains that the financial reality "divorced from utility fundamentals in 2017". This was the reason for such a powerful correction.
How far the market will fall depends on how much the cryptocurrency adoption level grew in 2017 in reality.
5/ How far we will fall depends on how much adoption grew in 2017 — 3x? 5x? 10x?
— Chris Burniske (@cburniske) 12 августа 2018 г.
He recalled that in comparison with the prices for cryptocurrencies in January 2017, the market is still a winner.
Burniske added that this is not the first and not the last time when cryptocurrencies fall in price.
6/ Right now the market’s sitting at ~10x above January 2017 prices (more/less in some cases), but has adoption grown 10x since then?
— Chris Burniske (@cburniske) 12 августа 2018 г.
