Cypto Continues To Slides With Stock Market
At the end of 2017 many inside the crypto bubble couldn't see an end to their metric rise. Talks of fifty or sixty thousand dollars a coin for 2018 were thrown around as legitimate possibilities in their eyes. However the reality of what crypto currency has seen over the first five or so weeks of the new year is what everyone on the outside was frightful of, the bubble popping.
Late December 2017 saw Bitcoin, which has become the measuring bar for cryptos stability, raise to $20,000 for a single coin. Fast forward to early February 2018 and Bitcoin has dropped below $8,000 for the first time since its historic explosion.
A steady decline for months as different countries and states have announced different regulations and crackdowns on the monitoring of profits from crypto banks was inevitable, but most didn't expect it to drive the currency this low.
The most worrisome realization comes when you compare its slide to that of the stock market. Crypto currency pitched itself as a hedge against government back currency inflation, offering a stable economy free of national influences. Yet when fear of inflation caused a correction in the making for the tock market over a week long at this point, crypto has not surged.
One would expect a legitimate hedge against currency to rise in the wake of the latest bear in the market, as gold and other precious metals have. Yet crypto currencies have continued to fall even at a more accelerated rate during periods of the slide.
This inability to secure the publics trust as a legitimate hedge against inflation is the biggest issue for crypto today. Realists saw every other issue coming down the road, but crypto was built on a public trust in that seems to be fading at this point.