Cryptocurrency Prices Evolve In Cycles, Andreessen Horowitz Report Shows – Benzinga

Andreessen Horowitz haspublisheda report studying the way crypto prices haveevolved.

What Happened:The Melo Parkventure capital firm released a report about cryptocurrency prices development on Nov. 24.

It outlines three cycles the crypto industry already had periods of high activity in 2011, 2013, and 2017, followed by the so-called crypto winters.

The first cycle took place in 2009-2012, according to a16z, with Bitcoin reaching $30 in June 2011, for the first time in history.

The second cycle happened in 2012-2016, with its peak in 2013, which the report describes as probably the first time most people outside of tech heard about Bitcoin. During this time, a lot of startups were founded, and the ecosystem started developing. The Bitcoin price briefly touched the $1,100 mark in December 2013.

2016-2019is the time where the industry started gaining mainstream attraction, peaking in December 2017, when the price of Bitcoin reached $20,000. Thethird cycle is also characterized by x10 growth in the number of developers coming into space and companies founded.

Why It Matters:Crypto prices have always been perceived as volatile and hardly systematic, and Andreessen Horowitz has attempted to provide an underlying order.

A16z believes the the digital currency space is in "fourth major phase" at the moment.

The venture capital veteran has beton the crypto space with investments in companies likeCoinbase, the biggest US crypto exchange, FacebooksLibra, and a decentralized credit platform MakerDAO.Itformed its own crypto fund in 2018, according to TechCrunch.

In April, itraised$515 million for its second crypto-focused fund, surpassing the initial goal of $450 million, Fortune magazine has reported.

In November 2019, the fundlauncheda free Crypto Startup School.

Price Action:Bitcoin traded at $18,762at press time, losing 1.81% over 24 hours.

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