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Crypto Market Price Crash: Could This Be Healthy?

The end of the year is usually filled with high expectations from cryptocurrency investors and traders, but the decline in the prices of major cryptocurrencies have dimmed the hope of most of them. However, some market analysts are of the opinion that the fall is actually what is needed in building more stability for future growth.

The Crash In Cryptocurrency Prices

The rise in the prices of Bitcoin and other major altcoins last year was seen as an opportunity for most investors to invest heavily in the crypto market, but what they seem not to forecast is the imminent crash, because naturally, anything that goes up must surely come down.
While a few lucky ones were prepared for the imminent fall, most investors were busy stuck in the present, without necessarily looking at what lies ahead. The fairy tale tragically ended on January 7, 2018, and the industry worth 830 billion dollars in market capitalization, experienced a shift in fortune throughout the year and suffered a low that left the market hanging around just over 100 billion dollars.
While most traders are recounting their losses, others like Tim Draper are of the opinion that the crash is not something to worry about and that cryptocurrency will effectively replace fiat in the next five years.
Although the crash is not something to be happy about, it would, however, expose the bad eggs in the crypto industry. The US regulators have been the catalyst behind a lot of selling pressure as have some high profile exchange hacks and ICO scams.
Regulation is thus needed to weed out the bad ones in the industry and bring about much-needed stability to the already proliferated market. Parabolic charts and are not conducive to a healthy trading environment. Lower volatility is quite better for the adoption of cryptocurrency in everyday life.
The crash in the price of most cryptocurrencies, although bad for traders and investors, others are more interested in what the technology can offer. A social science Professor, from the University of Singapore David Lee, stated that:

“Prices coming down is a very good thing for the industry. We should not focus on the price. It’s always a circle… People need to focus on how much can this technology do and the answer is a lot.”

The crypto industry is currently going through a difficult patch right now,  but with adequate policies and the right implementations, it will surely come out of it stronger and better.

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