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Market Crash May Lead To Massive Gains For Altcoins

Bears May Gain Control of the Crypto Markets, Bitcoin Expected to Go Down To $7,600

The last few days have seen crypto markets perform in the negative across the board. Bitcoin’s hash rate dropped, and it took down the leading cryptocurrency’s price down with it.

Bitcoin’s price fall had a ripple effect, and several of the top cryptos and altcoins saw their prices fall as well.

Most of the listed cryptocurrencies lost 20-30% of their value over a few days. DonAlt, a popular crypto analyst, believes that Bitcoin’s tumble could open up an opportunity for altcoins to make significant gains in the markets.

A bearish market for Bitcoin could mean that altcoins become a viable option for traders, and hence these cryptos would see their value go up.

DonAlt said that for altcoins to go on a bull run, Bitcoin should suffer a decline in price first. During the current market crash, Bitcoin’s price has dropped by over $1,000 to see the crypto asset trade around the $8,300 mark.

This is one of the lowest prices that Bitcoin has experienced this year, and if the coin does not receive enough support, it could lose more ground.

The crypto analyst said that although Bitcoin’s price decline is usually accompanied by price falls for altcoins, there’s a point at which capitulation on the part of crypto holders could assist altcoins to turn around.

DonAlt said that the market always behaves in such a way that it puts altcoin holders in maximum pain before giving them the incentive to capitulate before they can regain what they would have lost on the market.

According to a graphic that shows market psychology following a market crash such as the one currently being experienced by cryptocurrencies, the capitulation of altcoins is followed by panic and denial on the part of traders.

After this panic and denial has settled in, the market experiences a bull run due to the considerable price decline the coins would have suffered.

Bitcoin recovery on the cards

Since the beginning of the year, Bitcoin entered a bull run of note which saw the cryptocurrency’s price rise from $3,700 at the start of the year, to $14,000 in June.

The market crash has seen Bitcoin trade below $8,500, and this puts the crypto asset up 129%.

Bitcoin will likely regain its value in the next few months. The leading cryptocurrency is due for halving in the first half of 2020, and this will likely lead to another bull run for the cryptocurrency.

Previous halvings have directly led to massive bull runs, and the trend can be expected to continue next year.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.