A brief look at the performance of some top performing cryptocurrency assets in the past 10 years
Crypto's potential for high returns makes it very attractive to people looking to invest and grow their money but anyone who has invested in crypto also knows you can make fortunes as fast as you lose them, and this is all due to the same reason -Price volatility.
Crypto is experiencing another bull run in 2024 and I took a brief look at the data of some top performing crypto assets (by market capitalisation) to spot trends in price gain over the past 10years i.e. 2014-2024. By doing this we can extract meaningful insights that can guide our investment/ understanding of crypto currencies.
Disclaimer: this is not financial advice. As always you are advised to do your own research. I am simply sharing information which i believe is very helpful.
Bitcoin and Ethereum
Between 2014 till date, the price of bitcoin has averagely been on the upward trend, experiencing an all time highs in 2017, 2021 and 2024.
From my research the that responsible for that of 2017 was a combination of factors, including increased adoption, speculative trading, media hype, institutional interest, ICOs, market manipulation, and regulatory uncertainty, drove the price of Bitcoin higher in 2017. However, the market experienced a correction in 2018 as speculative fervor subsided, leading to a significant decline in Bitcoin's price.
in 2021 Bitcoin experienced a significant surge in price throughout, reaching new all-time highs. Several key factors contributed to this remarkable price rally which include instiutional adoption, retail participation, macroeconomics of covid, halving impact, coporate and institutional endorsement and technological development. these factors combined with speculative trading activity and market dynamics, propelled Bitcoin to new highs in 2021, making it one of the most talked-about assets of the year. However, it's essential to note that the cryptocurrency market is highly volatile, and prices can be influenced by a wide range of factors, including market sentiment, regulatory developments, and geopolitical events.
However, the combination of regulatory pressures, market corrections, macro-economic factors, technological challenges, and market sentiment contributed to the price decline of Bitcoin in 2023
it's the 2024 and bitcoin is experiencing another bull run some of the factors contributing to this could be Global economic uncertainty, halving agent, market speculation, inflation hedge, market speculation, regulation clarity and a complex interplay of factors
Alt coins
Looking at the graphs above, the cryptos with significant price increase in the 2024 bull run are Cardano, Binance coin and Solana.
Naturally decentralised exchange tokens will benefit from bull runs for several reasons like the utility it experiences during such periods, projects launched on the platform, and the incentives given by the exchange for example binance , incentives such as discounts given to users who hold the exchange's token. binance has built a reputation for lower fees and faster transactions making it all the more attractive to crypto users hence also boosting the price of its token.
Solana's increase may also be due to factors its technological advantages, ecosystem growth, strategic partnerships, positive market sentiment, developer activity, and investor interest. These factors collectively contribute to the strong performance of SOL relative to other cryptocurrencies in the market.
You may notice that not all the alt coins are moving in tandem with the current Bullrun, many factors may influence this such as investor sentiment and market speculation. Altcoins can offer opportunities for significant gains during bull markets, but Bitcoin tends to outperform them due to its established position in the cryptocurrency market and its perceived role as digital gold. Investors should carefully consider their risk tolerance and investment goals when allocating funds to different cryptocurrencies during bull runs.
Monthly trend in price of Crypto assets in the past 10 years
Examining the heatmaps of the 10 cryptocurrency assets above you will notice (when moving from left to right) that there has been no monthly price trend in the past 10 years. however, there is a vertical trend representing the change in price of assets in each year and this is most significant in years when bull runs occur.
Bottom line
Investors who have invested in Bitcoin in the past 10years (using a long-time perspective) have experienced massive gains, there may be fluctuations in the market but in the long-term gains are experienced.
Even though bitcoin is experiencing a bull run, most alt coins aren't aggressively moving in tandem, most likely due to a weaken investor confidence and loss of wealth during the last bear run.
Alt coins with great utility and community like bnb and solana are growing.
Crypto assets over the past 10 years have not benefitted from a monthly price trend, price changes have been affected by yearly price trend.
While cryptocurrencies offer these potential benefits, it's essential to recognize that investing in them also carries risks, including price volatility, regulatory uncertainty, security concerns, and market manipulation. Investors should conduct thorough research, assess their risk tolerance, and consider consulting with financial professionals before investing in cryptocurrencies.
Please share your thoughts and experience with crypto currency assets and what would you like me to analyse next?