Krypt market: outcome and prospectsBarry Copeland 17 / March / 18 Visitors: 488
Krypt market: outcome and prospects
The market of cryptovalues in the past year did not differ in anything special, it had ups and downs, but not stunning imagination - the volatility of the usual level (trade in cryptovalues). This year cannot be called a breakthrough, but it cannot be said that it was negative for the cryptov currencies (learning to trade cryptov currencies). The outlook for 2020 is rather positive,
The main cryptographic currency - Bitcoin - despite the fluctuations in 2019 demonstrated its stability, proving that it is able to perform the functions of a protective and value retaining asset (Bitcoin Digest). Starting the year at around $3,700, it rose briefly to almost $13,000 and stabilized at around $7,300.
There were no fundamental reasons for the critical price fluctuations of the bitcoin, or they lost their strength and the bitcoinomics learned to cope with them, after significant leaps, stopping at a price higher than that from which the rally began, but not at an inflated price. Some altcoins showed stronger fluctuations, but they didn't affect the market as a whole. On the positive side, the number of users of crypt-currency is constantly growing, if at the beginning of 2018 there were about 18 million, now there are already about 40 million users. Since the number of users is limited, the growth in the number of users increases capitalization.
Therefore, despite the fact that cryptovalues are still unstable, but there is a long-term positive trend. On the plus side, new users are more skilled in crypting. Those who entered the market by accident left it during the period of sharp fluctuations in the cryptovoltaic currency. The remaining users will not let the cryptovalues fall below a certain level. The main problem of the cryptovolta market, which came to light in 2019, is the lack of large institutional investors. Even worse, there was a noticeable outflow of them.
Institutions are cautious.
During the year, 68 cryptovoltaic funds, which operated in the interests of large investors in the cryptovoltaic market, were closed, and this cannot be called a positive phenomenon. However, this number of closed funds cannot be called critical, there are about 800 of them operating in the market. At the same time, there have been events in the crypt market that show that the interest of crypt investors has not fallen to zero, on the contrary, there are certain prospects.
In particular, Bakkt, the trading platform of the ICE NYSE operator, has launched trading in bitcoin futures and opened a custodial service for institutional investors (cryptocurrency exchanges). Fidelity Digital Asset Services, a cryptographic division of Fidelity Digital, has secured permission to launch a cryptographic trading platform for major New York City investors. Thus, the institutionalization of the cryptographic market continues, albeit at a slower pace than would be desired by cryptoentusitors. While many large companies are opening corporate crypt funds and trading platforms, the market is dominated by retail investors, which adds volatility to the market.
But it is not volatility that stops institutional investors, as cryptov currencies themselves remain an attractive investment. Investors compensate for the risks by changing the investment direction. Previously, investors invested directly in cryptov currencies and ICOs in anticipation of a sharp rise in asset prices. But now large crypto-investors prefer to invest in block technology. Larger funds like Polychain Capital, BlockTower, Arca Funds prefer to invest in such venture capital funds.
Institutional investors behave more cautiously after too sharp fluctuations in the prices of cryptov currencies at the end of 2017 and the protracted correction of 2018. For a relatively long time, the price of a bitcoin fluctuated between $3,000 and $4,000, which would have been the best time to enter, but large investors missed it for fear of a return to excessive price hikes. On the other hand, in the future long periods of stable development of the crypt market can be assessed positively by constitutional investors.
But even more so, institutional investors are stopped by the uncertainty in the settlement of the crypt market amidst the sharp aversion of the U.S. authorities to the cryptocurrency projects Libra from Facebook and TON from Telegram. The fact that there are no exchange platforms on the market with the same reputation as the stock market contributes to a cautious evaluation of the prospects. The mass entry into the krypto market is also hampered by the difficulty of analyzing the prospects of the krypto market. Almost no one can predict the price movement of the cryptovoltaic currency. This forces investors to minimize risks as much as possible, investing very carefully in very few blockchecks, and if we are talking about cryptov currencies, it is only in the top ten coins of the rating, led by Bitcoin.
The overwhelming majority of analysts assume that the cryptovoltaic market will be more calm in 2020, but it will develop progressively. However, there is a threat of continuation of a certain outflow of investors if the crypt market does not move from fluctuations of about 7 thousand dollars to the expressed positive trend. But, on the other hand, there will remain investors in the market, who will establish themselves as major players. On the whole, a standard structure for most industries is being formed in the crypt market, with a smaller number of players owning an overwhelming share of assets. Several events that are expected or are already taking place give rise to optimism in the cryptovoltaic market.