The cryptocurrency market recently enjoyed a gain of $13 billion, affecting the prices of cryptocurrencies. Bitcoin, which has been experiencing a decrease in value following the bans of tech firms and social media platforms on cryptocurrency related ads, has rebounded to $ 8050.90. Other major cryptocurrencies including Litecoin, Ethereum, Bitcoin Cash and Ripple have increased in value as well.

Cryptocurrencies have become very popular, but digital currencies are very volatile. The cryptocurrency market is experiencing a bear cycle and those who wanted to get ten to a hundred-fold returns within three to six months have already left the market. Twitter, Facebook and Google have already banned ads relating to cryptocurrencies. Some celebrities who were actively trading cryptocurrencies have given public apology, deeply affecting Bitcoin and the cryptocurrency market’s image.

One of the reasons why the cryptocurrency market is very volatile is because speculators tend to overstate their response when the market experiences highs or lows out of panic or fear of missing out. Since the correction has started in January, the market’s downward movement has been exaggerated. Large sell volumes were seen and the market recorded around 72% correction.

This is not the first time that it happened. The cryptocurrency market had corrected itself each time and recovered. In 2014, it took around a year for the market to recover. After reaching its bottom at $6,000, the price of Bitcoin has been fluctuating in the $7,000 to $8,000 range. The price sometimes dipped below $7,000 and moved above $8,000.

Some investors didn’t understand the short-term trend of cryptocurrencies. During such times, cryptocurrency adoption and understanding its basics is very important. This will not only help them avoid losses, but also maintain their assets.

In some countries like Japan and South Korea, the adoption rate of cryptocurrencies is still increasing despite the negative impact of the cryptocurrency market and cryptocurrencies. South Korea’s third largest e-commerce platform is accepting twelve cryptocurrencies. Bic Camera, the largest electronics retailer in Japan, has been accepting Bitcoin payments for months. Capsule, the biggest hotel chain and budget airline in the country, is integrating Bitcoin. If search engine interests, transaction volume and trading volume are considered, the cryptocurrency market is definitely experiencing a bear cycle. It could take several months before Bitcoin and other cryptocurrencies can recover and enjoy its previous levels once more.

On the other hand, several analysts still remain optimistic on Bitcoin’s mid-term trend. According to cryptocurrency trader Nick Cote, the price of Bitcoin could reach $7,700 in the coming days and regain the $8,000 level if it maintains its momentum.

As of the moment, most cryptocurrencies are moving in a simultaneous manner. A large amount of assets is following Bitcoin’s price trend. The cohesive price movement of cryptocurrencies shows an immature and unsteady market. The market would continue being highly volatile and unstable unless the cryptocurrencies start moving in different directions. For those who want to invest in cryptocurrencies, understanding the cryptocurrency market would help them make the right decisions and avoid unnecessary losses.