BitCoin (BTC) Continues Struggling While Market Corrects Down
The downward ride that Bitcoin has been experiencing since mid-December continues to hamper investments as several experts are now beginning to hypothesize where she will bottom out — a stark contrast from just a few months ago where consultants were predicting the inverse of such a scenario. The infiltration of government regulation and still the uncertainty of how cryptocurrency will emerge in our everyday lives certainly is making a profoundly negative effect on the market as many are still skeptical on the direction of our future digital economy. The derision that cryptoassets have been met with is quite alarming and could be a contributing factor in large scale purchases of the coins readily available.
Commenting poorly on the matter, David Garrity, CEO of GVA Research, predicted that the coin may fall as far as US$5,000 once the institutional investors and financial establishments are integrated into this still volatile market. As the CBOE and CME have lead the way into cryptocurrency ETF’s, the spotlight has been bright on their organizations while the market has failed to stabilize even after so much exposure. As Garrity warns, shorting the market now is not a wise investment as the overall outlook is trending down. However, the legitimization of cryptocurrency can be confirmed as more professionalism is introduced to trading platforms by the way of large banking investments. The consistent pouring of capital into the market by new investors is no longer a reliable bet as there appears to be many who have taken their profits and are waiting for the exchanges to reassert themselves in an upward trend.
By watching and tracking BTC, she will become more predictable and far less uncertain over time. The comprehensive exchanges have been so fiercely questionable in the past that the strategy to move one’s capital into another coin with more potential will no longer be viable as rising value is not guaranteed. My advice would be to put the coins into a tether and wait out the storm that lies ahead in terms of the Asian markets failing to stabilize which will lead to government penetration into the cryptocurrency sphere that was designed with decentralization as a quintessential feature. The potential for short-term losses is very high at the moment compared to the doubt circling the looming regulations and general poor mood currently associated with investing in the market.
