It is difficult to accurately predict the price trend of highly volatile assets like cryptocurrencies. One could attempt at least to predict a near-possible scenario based on the cryptocurrency’s valuation based on available financial strategies. It is – though – not clear which theory Joseph Lubin, a prominent blockchain pioneer, applied to the bitcoin market. But what’s evident is that his prediction about the cryptocurrency’s low came to be right.
Lubin, who founded blockchain software firm ConsenSys, on December 21, 2018, called a bottom in bitcoin and the rest of the cryptocurrency market. The prediction-cum-declaration came a week after the bitcoin price had settled 2018’s low at $3,128.89 on San Francisco-based exchange, Coinbase. It also appeared on the date when the cryptocurrency had corrected upwards by 33.40 percent, signaling a strong rebound.
“I am calling the crypto-bottom of 2018,” Lubin had said. “This bottom is marked by an epic amount of fear, uncertainty, and doubt from our friends in the 4th and crypto-5th estates.”
I am calling the cryptobottom of 2018. This bottom is marked by an epic amount of fear, uncertainty, and doubt from our friends in the 4th and crypto-5th estates.
— Joseph Lubin December 21, 2018
The well-noted sarcasm in Lubin’s statement towards the “4th and crypto-5th estates” targeted cryptocurrency startups, founded during the 2017’s infamous ICO boom. Analysts believe that it was the failed ICOs that drove bitcoin’s drive to its 2018 low. Lubin, on the contrary, indicated that the time of ICOs was over, which would bring buyers back to the bitcoin and other similar, genuine markets.
The Bitcoin Recovery
Lubin’s statement is now set to go in history as one of the most accurate crypto predictions ever made, especially at a time when bears were predicting that bitcoin will crash to $1,500-and-beyond in 2019. Nevertheless, the reverse happened. Bitcoin surged throughout 2019 to maximize its rebound by as much as 167.52 percent by the time of this writing. In the second quarter alone, the cryptocurrency had jumped more than 102 percent against the dollar owing to improving market fundamentals.
Bitcoin’s dominance in the crypto market warranted growth trajectory for other similar assets, which – over the years – were tailing its trend. Many of those assets managed to post higher rebounds than that by bitcoin, just what Lubin predicted. While Litecoin recovered by as much as 347.20 percent, Ethereum followed suit with a 186.40 percent surge. But it was Bitcoin Cash that reserved the most significant slice for itself, jumping 442.64 percent from its cycle low.
On the whole, the entire crypto market witnessed its valuation jumping to 244.98 billion, up 141.28 percent from its cycle low established on December 15 last year.
“Best of the season to all of our supporters and detractors out there. Good time to acknowledge that ultimately we are all in this together,” Lubin had said. “Wishing you all a great 2019.”
2019 turned out to be great, indeed.
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Author: Davit Babayan