The Market's Down, but No Need to Panic: Consider Both Sides of the Crypto Coin

  • Alexander Goborov
    ⭐ Features

    Many claim we’re in a pretty pickle, but there’s no reason to scream Mayday yet: the big picture remains reassuring

The Market's Down, but No Need to Panic: Consider Both Sides of the Crypto Coin
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Some of the present market’s indices appear rather alarming: the bear does tend to roar and stomp. But exceedingly more alarmingly, some experts view it as the green light to peddle pessimism and panic to all around. While, for aught we know, this is but a phase, and must be taken as such. Traders should probably be less reckless, newcomers more vigilant, but the market isn’t going anywhere: it shall recover soon enough. Don’t sweat it.

Signs of the Supposed Crypto Armageddon

Bitcoin is down to around 5 500 USD, the lowest figure in over a year. To make matters worse, Bitcoin’s market cap figure has dropped below 100 billion USD, also for the first time in over 12 months. The past 24 hours have seen a decrease in total crypto market capitalization numbers by more than 30 billion USD.

Tether, being a stablecoin pegged to USD, saw a drop in its price on Kraken, where it trades for fiat. In addition to other factors, because of this compromised parity, crypto exchanges that trade against Tether, e.g. the Hong-Kong based Bitfinex, have seen the price of Bitcoin move down against the USD in return.

The fork-riddled Bitcoin Cash, which is about to be split into two separate altcoins (core/ABC and Satoshi’s Vision), Ethereum, and Ripple are all seeing declines of up to 12% a day in their values on the market. As a by-product of this freneticism, Ripple (18.7 billion USD) is now in second place by market cap after Bitcoin having recently surpassed Ethereum (18.35 billion USD).

The Bright(er) Side of the Coin

It’s important to understand that any industry, any financial sector, any economy will go through a period of stagnation and recession. There have been numerous examples of it from the Revolutionary War to the Great Depression. Heck, the Blockchain technology itself emerged in the aftermath of the 2008 global crisis. Lows give way to highs and improve the nature of the market in the process. It’s inevitable.

At the same time, even in today’s dire crypto-economic conditions, many vital indicators tell a positive story nonetheless. While there may be problems with diminishing cryptocurrency market cap values and falling prices on exchanges, the big picture is not solely a grey one. The Blockchain market itself is growing regardless, and it is projected to continue doing so in the future.

The Blockchain market

One of the very reliable sub-indicators of the fact that it is happening is the number of crypto wallets, which is growing by the day. Too promising a figure for those trapped in quicksand, surely.

 the number of crypto wallets

Furthermore, the ICOs are not vanishing, quite on the contrary. In spite of the Chinese government’s ban on this type of fundraising, the global figures are going up, which has been corroborated by numerous independent publications.

the ICO

Concurrently, some of the economic trends, however fragmental, are still bullish; Bitcoin, for one, until very recently, has been demonstrating a great deal of stability, and where longitudinal volatility is low, the whining voices should perhaps be tactfully sidelined.

All in all, despite the pressure and the stress, there is little time for poor-me-ness right now, when the overall crypto aura is that of vigor and, as mundane as it sounds, hope: after all, right this very second, whole crypto communities are working on new and yet newer ways to crypto-revolutionize the world and change the very nature of modern economy, from payment methods to employment.


“Abandon your posts! Flee, flee for your lives!”


A memorable line borrowed from Denethor, the infamous character from The Lord of the Rings trilogy. And we all know how that strategy worked out for him. Not too well really...

Instead, perhaps we should follow Gandalf’s orders and prepare for battle, the crypto battle that never ceases, be the market bear or bull. And yes, right now we are indeed in a bear market. The prices are plummeting, the grip is becoming weak: this is the very definition of it.

In actuality, all this means nothing more than the fact that the bull market has got to be on the way, its eager horns already glaring through thick mist somewhere in the distance. It’s coming. Despite the rocky road ahead, sooner or later, it is. In the meantime, keep your head above water and do not overdramatize. Be Zen. It’s going to be fine.

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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