In December 2017, dozens of cryptocurrencies launched to the moon, hitting astronomical valuations. That trend continued into the new year for at least a few days. Momentum soon swung downward as the market took a tumble. Within days, $800 billion in market cap dwindled down at a rapid pace. Bitcoin went from a value of nearly $20,000 to half of that and below within weeks. Nothing seemed well in the cryptocurrency realm.

Where are cryptocurrencies today?

Mid-2018 sees cryptocurrencies and investors in a holding pattern. Regulators continue to work on regulating the industry and creating policies for taxation. Meanwhile, casual and seasoned investors alike are waiting for the next uptick in value. Developers behind individual cryptocurrencies continue improving their creations. Prices remain stagnant and at a fraction of their values from a few short months ago.

Where will cryptocurrencies go next?

Nonetheless, plenty of people still see 2018 as being a big year for cryptocurrencies. Adrian Lai is a founding partner at Orichal Partners, a crypto-investment firm. He sees 2018 as a year where the market matures and brings in more institutional investors. Lai wants more regulatory oversight in cryptocurrencies. Plus, he believes institutional investors will help stabilize the market and push valuations higher than before.

Fighting Back Against Volatility In The Markets

Volatility is the best descriptor for the cryptocurrency market in 2017. Lai's desires of regulation and institutional investment help avert volatility in a noticeable way. Fortunately, regulators in the United States and elsewhere continue to make strides in the regulation department. It doesn't hut that venture capital money continues to flow into blockchain and cryptocurrency projects, showing strong institutional support.

Few people believe cryptocurrencies are dead or on their way out the door. Investments continue to flow into various projects, and companies love the blockchain. For the time being, investment markets should remain stable, albeit uninspiring. Prices may not jump up or tank downward for the next month or two. More regulations could help signal to the market when a rally is appropriate. Although huge gains are on pause right now, the cryptocurrency market remains healthy.