Main Price Dynamics of the Crypto Market

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I have been trying to understand the long-term price movements in the crypto market for some time. I follow the publications on the subject and develop various models using historical price data.

Because I have reached a certain level of maturity, I would like to list the basic dynamics of the crypto market in short paragraphs.

Prices in the crypto market are developing exponentially. Such a price increase has never been the case for any asset class in history.

The market can be examined in two basic categories, Bitcoin and altcoins.

The market value of Bitcoin is increasing by an average of 2 times every year. The total market value of altcoins is increasing by an average of 3.08 times every year. The most critical question regarding the crypto market is how many years this exponential development will continue.

In the crypto space, bull and bear periods are incomparably sharper than in other markets. To date, there have been three bull markets with peaks in June 2011, December 2014, and December 2017.

The volatility in the crypto market is declining. This has become particularly evident in recent years. Therefore, I believe that we should not expect an enthusiastic bull market like 2014 or 2017 in the coming months. This is good news because it brings with it the conclusion that the recession in 2018 and 2019 will not be repeated.

Even with a reduced pace, volatility is incomparably higher than in other markets. Therefore, it is useful to be cautious about investing in crypto.

During bull market times, Bitcoin's market share is decreasing. It increases during bear market times. The general trend is decreased share of Bitcoin in the long run.

Bitcoin's price volatility is low compared to altcoins. This difference becomes more pronounced, especially during periods of extreme enthusiasm and panic.

Although Ethereum seems to stand out from other altcoins with its 18% market cap, its price volatility is still in line with them.

There is a dynamism in the crypto market that cannot be compared to any other field. I think that one of the reasons for the attractive returns it provides is this innovative spirit.

As a result, I believe that the crypto market offers us a historic investment opportunity window in the next few years.

Below are the articles I have written about the long-term price development of the crypto market and the resources I have used in this regard.

Most Important Question of the Cryptoverse
Crypto Price Theory
Bitcoin Price Analysis
Ethereum Price Analysis
https://www.lookintobitcoin.com/charts/
https://www.youtube.com/channel/UCRvqjQPSeaWn-uEx-w0XOIg

Thank you for reading.

Image Source: https://unsplash.com/photos/IDNBHZTamQ8

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