The second half of 2019 is now upon us. As we all know, 2018 was a terrible year for cryptocurrencies as the market slumped and lost much of its 2017 gains. The market sentiment at the start of this year was evenly divided between cautious optimism and fearful pessimism. However, cryptocurrencies have managed to climb several bullish waves despite the slow start to the year.
The chart above shows the performance of cryptocurrencies relative to traditional Wall Street equities as represented in the S&P 500 and NASDAQ Composite. The BTC/USD has gained 240 percent in the year-to-date period while the NASDAQ Composite Index and the S&P 500 have only gained 23.65 percent and 18.86 percent respectively in the same period.
In response to the outperformance of cryptocurrencies, some trading platforms such as eToro are now allowing traders to actively build crypto-based portfolios in order to access opportunities in emerging asset classes. This article will provide more insight into the performance of the cryptocurrency market as we prepare to head into the second half of the year.
Cryptocurrencies started 2019 in a depressed state following the general bearish downturn of 2018. Bitcoin started for the year around $3717.60 and other altcoins were also in a depressed state. However, the euphoria of starting a New Year triggered a 9 percent bullish run in Bitcoin to end the first week at trading around $4,031.09.
A 9 percent rally at the start of the year is tepid by historical cryptocurrency standards; hence it wasn’t surprising the cryptocurrency market ended January with losses. The market cap of the cryptocurrency market declined more than 8 percent in January from around $125B to $115B.
Bitcoin’s trading price dropped to its year-to-date low of $3358.83 on February 7 but the market seems to have gotten on a slow but measured uptrend since then.