A report published in October by OneAlpha revealed that the Bitcoin market was gaining strength after the correction of 2018. The stability of recent weeks is a sign of maturity of the markets that seem to have passed the phases of hype – both bullish and bearish – of the previous months.
OneAlpha is an Israeli company part of First Digital Assets Group; a fintech that defines itself as "the main group of digital assets in Europe".
OneAlpha Report: Bearish trend is a good thing for the market
According to the report, the current downward trend was necessary. This decline in the markets served as "relief" and generated a "purifying effect" on the ecosystem.
The facts seem to show that the OneAlpha team is right. After the abnormal bullish series of 2017, many people entered the market abruptly and immature. The 2018 correction seems to have returned to Bitcoin the stability necessary to gain greater credibility as a "market" rather than its previous "bubble" image:
"From our point of view, the prolonged bear market has provided the industry with much needed relief, lowering valuations to a more reasonable level, and despite significant correction, much of the value represents the future potential of the network rather than the current one. The boom and the collapse of December 2017 and January 2018 had a purifying effect on the ecosystem, eliminating many of the speculators and leaving mainly investors, operators and real builders on the market. This was necessary to move forward and build a successful ecosystem ".
Bitcoin: Best Currency / Ethereum: the best platform
The relationship is clear in dividing the cryptocurrency market into several branches. The first is composed of cryptocurrency notes. For OneAlpha, 2018 was a year during which Bitcoin strengthened, recovering part of the influence taken away by other altcoins:
"Currently, Bitcoin is gaining strength and acquiring more than half of the total market capitalization. Ethereum captures 10% of the total market capitalization. Currently there are more than 2,000 cryptographic assets traded and more than 1,000 unique tokens worth about $ 14 billion. 87% of the tokens are based on Ethereum, with NEO and Waves that capture 2.4% each …
Of this evaluation, it is evident that Bitcoin captures about 71% of all currencies and Ether 54% of all platforms."
An optimistic vision of the future
The Report also underlines the importance that Ico have had in increasing the interaction with the public (despite cases of fraud and constant failures). It also indicates the increase in institutional investments and patents on blockchain technology registered in China and the United States.
The report offers a fairly positive view of the situation by considering the facts from a broad perspective. According to analysts, market behavior in 2018 is a natural and necessary reaction to the madness of 2017:
"We are living a phase of sobriety and maturation – a decline in retail investment and a more careful and responsible approach by institutional investors on the one hand and regulators around the world on the other. A long bear market may be the ideal climate to allow dust to settle and examine, both internally and externally, the real possibilities that lie within the cryptocurrency and blockchain ecosystem. Ultimately, the goal is to take a step forward and bridge the gap between consumers, traditional investors and blockchain technology. "