What Is The Future Of Cryptocurrencies?
By Crypto Info on Altcoin Academy
The cryptocurrency market is currently experiencing not the best of times. Bitcoin, having reached its “finest hour” at the end of 2017 and fixing a price maximum at $ 20 000, is currently trading at $ 10 000, and this is not the worst thing that happened in 2018 when Bitcoin price reached $ 3100.
What Happened, and What is Capable of Raising the Crypto Industry “From Its Knees” in the Future?
It is logical to associate unprecedented growth at the end of 2017 with the so-called “hype” around cryptocurrency topics. Many people invested in Bitcoin, fearing to lose the opportunity to earn substantial money amid unprecedented growth in the digital asset market.
Such a phenomenon even has an official name — FOMO (Fear of missing out).
Bitcoin price, first of all, depends on consumer demand. Against the backdrop of a wave of purchases, the rate of the main world cryptocurrency grew until the interest of buyers began to yield to the appetite of sellers who began selling Bitcoin for profit.
And this is not surprising — the person who bought the asset for $ 2000 (or even less), of course, sells it at a rate of $ 20,000. This is logical.
The current situation became the result of the speculative basis of the cryptocurrency market — those who managed to sell profitably remained on horseback, while the rest believe in a bright future for cryptocurrencies and an imminent reversal of the bearish trend.
There are very serious prerequisites for continuing the growth in the rate of digital assets that began in early 2019.
The main catalyst for further recovery of the industry may be the growth of capitalization of the cryptocurrency market, which will become possible against the background of the arrival of institutional investors or otherwise large players with huge capital.
In this case, along with the growth of cryptocurrency market capitalization, cryptocurrency rates will start to rise.
The main decisions aimed at attracting institutional investors in the cryptocurrency market are several factors — the adoption by the US Securities and Exchange Commission (SEC) of Bitcoin-ETF (cryptocurrency exchange-traded funds), the launch of the licensed and regulated by official legislation platform Bakkt (which has already been approved by the US authorities and is scheduled for September 23 of this year), the launch of cryptocurrency futures on the Nasdaq world stock exchange, the launch of the Libra stablecoin from Facebook, as well as the start of work with cryptocurrencies the world-famous investment platform Fidelity Investments (which also today is almost ready for deploy).
All these decisions are aimed at providing a reliable and safe entry into the cryptocurrency market for large investors who are still afraid to invest in the cryptocurrency against the background of an unregulated basis of the industry, and therefore the risk of losing the money invested in Bitcoin.
Therefore, Bitcoin may soon be back on horseback and will bring considerable dividends to its investors!
