Major cryptocurrencies took a beating on Monday as it suffered losses of up to 70% prior to the launch of Consensus, the largest annual cryptocurrency conferences in New York.
If history could tell us something, it is that cryptocurrencies should expect a healthy recovery during and after the conference according to information from Fundstrat Global Advisors. The firm added that bitcoin has recovered from 10% to 69% in the past few years.
“Already one of the largest crypto conferences in the world, attendance this year is up dramatically and coming at a time when Bitcoin/Crypto is down YTD,” the firm said in a note to clients. “Hence, we expect the Consensus rally to be even larger than past years,” it added.
Bitcoin and Ethereum dropped to more than 3%, while Ripple’s XRP went lower by 2.5% on Monday. Bitcoin cash was down 7.2% ahead of its hard-fork on Tuesday.
This year’s conference is predicted to be three times bigger and larger compared to the previous years, with 7,000 expected attendees—and this is not the only conference happening either. Dozens of other meet-ups, conferences and parties are taking place during New York’s “Blockchain Week”.
Bitcoin’s value has dropped by 37% so far in the first half of 2018, going as low as $7,000 per coin in early February. Fundstrat claims this is probably its lowest point this year.
“The rally post-Consensus has been strong and more supportive of our view that Bitcoin has already bottomed for the year,” according to Fundsrat. “In fact, since 2010, the only year when Bitcoin did not bottom before March 31 was 2014,” it added.
Fundstrat predicts 2018 to be a pretty strong year for cryptocurrencies. “But, we see the larger and more established blockchains growing in dominance in 2018—hence, better upside for ETH and BTC over the FS CryptoFX indices,” it added.