Joseph Lubin is the co-founder of Ethereum. He stated that the surge in cryptocurrency prices in the last year was actually a bubble. Also, due to the recent fall in prices, the cryptocurrency market is much stronger now.
According to him, the cryptocurrency world has undergone 6 bubbles. Each bubble is larger than the previous one. Also, this time around there was a tremendous surge of activity. Also, the speculators are still trading in cryptocurrencies. This is actually resulting in more and more volatile price swings as well. This is one of the main problems which the cryptocurrency investors are actually suffering from now. Most of the traders are not just for the short-term money. That is why they are significantly increasing the volatility as well.
As the cryptocurrency volatility increases more and more, the genuine traders are getting frustrated. Cryptocurrencies are moving 6 to 10% on a daily basis almost in either direction. That is why many of the people do not actually know what they should be doing with their cryptocurrency Holdings. According to the co-founder of Ethereum, it seems like the speculation is here to stay.
On the other hand, it had gone all the way up to $ 1000 in February. This was on the back of the news that most of the other cryptocurrencies, as well as ICOs, are using the Ethereum blockchain. Also, the applications related to the smart contracts were being developed as well. Due to this very reason, Ethereum had increased significantly.
But then, it has been consistently falling as well. It hit a low of $ 251. This is a price which it had not hit since last November. That is why currently it is in the bearish territory. Not many of the investors are actually positive on ether. This is one of the problems which it is facing currently.
Also, the downtrend is not just limited to ether. Many of the other cryptocurrencies are facing headwinds as well. They have been falling consistently as well and are at multi-year lows. That is why the investors do not know whether they should remain invested in the cryptocurrencies or whether they should think about selling out.
If indeed, the volatility is driven by the speculators, then after a point in time, the volatility will die down. This is because the real investors will come into the picture at compelling prices. After that only, the real rally in most of these cryptocurrencies will begin. Up until then, the volatility is here to stay.