There’s no doubt that the first quarter of 2018 has been a rocky one for cryptocurrencies. Olsson Capital monitoring of the main cryptocurrencies has shown some big drops, with Bitcoin being the one to lose the most. Here is what the picture looks like for the rest of the year and, in particular, Summer 2018.
A quick look back
Last year people started to recognize cryptocurrencies as more than just a scam or a techie’s dream. They came to realise that some were a strong asset for the future, and Olsson Capital saw an increase in Cryptocurrency Trading. Towards the end of last year, the increase in value was phenomenal but there was caution.
That caution proved to be wise – the first quarter of 2018 saw the worst first quarter price performance since the currencies were created. Bitcoin went from $13,413, at the beginning of the year, to just $6,928 by the end of March – a 48% decline. And, it wasn’t alone – Ripple was the worst performing of the major coins with a 77% decrease. Meanwhile, Ethereum’s value saw a similar drop to Bitcoin of 47.7%.
Why the price changes?
Just as with fiat currencies, there are many reasons cryptocurrencies have had a bad quarter. Regulators in China and South Korea, for example, started to get tough on cryptocurrencies while in the US, the Securities and Exchange Commission (SEC) are trying to bring cryptos into their domain. Around the world, there have been calls for more regulation.
Another move that didn’t help was the ban on advertising cryptocurrencies brought in by big players such as Google, Facebook and Twitter. A slowdown in new money coming into the assets also played a part.
A warmer season ahead
While winter has been chilly, and the cryptocurrencies have also felt that chill, there’s warmer months ahead both for the weather and for traders. While predictions are always subject to unpredictable changes, there are experts with some solid ideas about what’s ahead.
For those who like to stick with the bigger names and focus CFD trading on Bitcoin, most experts predict a good few months ahead. While the increase, by the end of June, is only forecast to be around 14% on current prices, the figures by the end of December could be as much as 163% increase on current value.
Ethereum is also predicted to have a good few months and a healthy increase in value before the end of the year. Most experts are predicting around 24% increase by the start of next month with the end of year increase predicted to be about 108% on current value.
A cooler summer?
For a cryptocurrency that isn’t in for the best summer, there are a few candidates. Top of the list is Ripple, which has had a terrible year so far. Experts see a short-term gain for it, around 8% by June 1st. But the long-term prediction isn’t so bright with some experts actually thinking it will be around 15% lower at the end of the year. Fans will hope this isn’t the case but trading against it could remain an option.
Litecoin is a middle ground in terms of predictions. Most expect a modest increase of around 16% by the start of June and the end of the year is expected to be up by about 50% on current value. So, this might be a good trading option depending on the strategy used.
Price monitoring the different cryptocurrencies is available through the charts and educational resources on the Olsson Capital website to see if these predictions come true.