Bitcoin saw its price plunge 72%. Ether – the second-biggest crypto in terms of market value – fell 82%, while many smaller cryptos crashed by more than 90%.
These are staggering declines. But this is nothing new for the space.
Bitcoin's price has plunged 70% or more six other times since it was created in 2009. Each time, it's bounced back stronger than before.
Of course, history doesn't always repeat itself. So I recently called our in-house crypto expert, Disruptive Profits editor Marco Wutzer, to see what he expects for 2019.
Justin: Marco, last year was a rough one for the cryptocurrency market. What do you expect now that 2019 is underway?
Marco: We've obviously had an impactful bear market in crypto in 2018. Pretty much all of last year was a downtrend.
Bitcoin was relatively stable for several months around $6,000. Recently it has dropped to between $3,000 and $4,000.
This is what I like to call the "capitulation phase." It's the last phase in a bear market, in which the last weak hands throw in the towel. But this phase will most likely go on for a few more months.
I think we will continue around current price levels or even a bit lower for a couple more months. Then, we'll form a bottom and enter the earliest stage of the next bull market.
When the market actually turns around, we'll have a slow rise from the bottom. We won't have lots of positive sentiment and excitement. This needs time to build, especially coming out of a capitulation phase.
So I expect a slow climb over 2019 once we get out of the capitulation phase.
We are in a time for accumulation. Hopefully, a sustained move up from the bottom and an upward price trend will give subscribers who are uneasy about the current state of the market more confidence again.