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2017 finished with what can best be described as a crypto mania. Seems everyone was talking Bitcoin. Companies were adding blockchain to their title and seeing their stock go up 400% on noting but a name change. But this was different this time! Apparently not. From the high Ripple is down 74%, big dog Bitcoin 53%.

Bitcoin daily 2 1 18

Bitcoin via BitMex - actually traded higher on futures and other exchanges

Whether you are a crypto 'believer' or not you have to acknowledge price got ahead of it's self. There has been regulatory intervention in China, Russia and South Korea. There has been a number of heists and the CME and CBoE even rushed to the party. What is clear is the market has grown too fast and the structures were not in place. Rationality was out the window, casinos rather than markets were in operation.

Sobering Up With Bitcoin

Forget the for and against here is the hard cold drawdown numbers via @APompliano

Drawdown from All Time Highs

  • Ripple: -74%
  • Bitcoin Cash: -69%
  • Cardano: -67%
  • Litecoin: -60%
  • Bitcoin: -53%
  • Stellar: -50%
  • EOS: -44%
  • NEO: -33%
  • Ethereum: -23% 

Remember These stories?

Largest U.S. Bitcoin Marketplace Coinbase Disabled in Crypto Crash

US Government To Sell Dark Web Bitcoin Stash In Money Laundering Case

Ten Risks for Bitcoin and Other Digital Currencies

Bitcoin Fever Takes Hold, South Korean P.M. Warns $BTC May Corrupt Youth

Trick or Treat? CME Announces Launch of Bitcoin Futures

My favorite stories of rational investing:

Long Island Iced Tea Rebrands as Long Blockchain Corp $LTEA Jumps 250%

This Bitcoin Blockchain is causing a $RIOT Up 45% in A Day

Where to know?

Obviously there has been a ton of money made and lost in the past few months. The big question is what is left after the carnage, was this but a passing fad like finger spinners and cabbage patch dolls? 

What is most likely out of the wreckage a truer market will be built. Bitcoin is well entrenched as the leader in the cryptocurrency space. It is has branding and name recognition above all else. The next phase will see a more mature and demanding environment, Bitcoin will have challengers given the developing alternatives and the sheer cost of mining and transfer time Bitcoin has compared to others.


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