Looking at the crypto market’s fundamental performance in 2011, 2013, and now in 2018, the former AQR Executive, Chief Risk Manager, Mr. Aaron Brown thinks that despite the record-breaking turbulence in the crypto market, 2018 traded fairly well. He thinks the 2018 crypto market deserves a ‘B+ Grade,’ as per the reports from the Bloomberg Opinion reports. Brown, the author who covers risk management and gambling topics, said that the 80 percent dipping trajectory of Bitcoin resembles the downs and the hikes of the digital coin’s graph movements from the years 2011 and 2013. Comparing the turbulence, the downturn of Bitcoin this year is, therefore, milder, and the sell-offs are rather higher in comparison to 2013. Brown further added that the recovery time of the cryptocurrency from the drop from 2011’s peak was within two years whereas the recovery took longer in 2013 by taking almost four years before it again reached its all-time high of $20,000 in 2017.
While analyzing Bitcoin’s 2018 dip in light of Dow Jones U.S. Financial Index (2007), Brown said-
“The charts look similar from one year before peak to one year after.”
According to him, if Bitcoin will follow the same recovery time, it should at least take another three years to recover again from its current downturn. Referring to the Nasdaq Composite Index, Brown thinks that recovery periods can take a long time, but the comeback from the lowest of lows is common. Brown concluded his views by saying that he is sure that cryptocurrencies are ‘here to stay’ by crediting the ‘technical solution’ that the digital currency offers.
