In line with a recent report ‘published‘, despite a major sell-off this year, a former AQR Capital Management official gave crypto markets’ 2018 performance a “B+ grade.”
Aaron Brown — AQR’s former Chief Risk Manager and an author on risk management and gambling-related topics — outlined Bitcoin’s [BTC] around 80% downfall from its $20,000 USD one year past reflected peaks and falls in previous years, particularly in 2011 and 2013.
Brown focused on the actual fact that Bitcoin’s decline this year has truly been comparatively milder than the speedy drop its saw once its peak in 2011. The 2018 sell-off has, however, still been grifter than the one in 2013, the author noted.
The author noted that back in 2011, Bitcoin [BTC] hit a bottom within a year after reaching its peak and recovered in less than 2 years. The downward trend that followed Bitcoin’s peak of around $1,150 USD earlier in Dec. 2013 took an extended period, lasting four years before reaching its incomparable high price in Dec 2017.
The author additionally compared the 2018 crypto collapse to the Dow-Jones U.S. Financials Index in 2007, stating that “the charts look similar from one year before peak to 1 year later.” Brown noted, however, that crypto may take more than 3 years to recover, following a constant path.
Looking at the historical performance of the Nasdaq Composite Index, that took fifteen years to recover after 2000, the monetary expert ended that “cryptocurrencies may keep low for a really long time,” however still stressed that “recoveries from crashes are most common.”
In conclusion, Brown expressed optimism concerning the “technical solution” provided by cryptocurrencies, stating that he’s assured crypto is “here to remain.”
Meanwhile, crypto markets have recently seen another recovery today i.e on 23rd Dec., with Bitcoin [BTC] breaking over the $4,000 USD threshold after dropping around $3900 USD on 22nd Dec. However, at the reporting time, Bitcoin [BTC] is presently trading at a price $4,046.91 USD, up a solid 4.49 % over the past twenty four hours.