When will the markets pickup again? If you read the news and watch videos, twitter etc. about crypto people are contantly saying that we have to prepare for the next bull run. Then question is when that will happen.
If you look at the market capitalization from coinmarketcap (without Bitcoin) you can see that since somewhere in Feb 2018 we are moving sidewards with little increases and decreases.
But it doesnt move upwards continuously as we would like to see. What is the reason you might wonder? I think there are some reasons for that:
Bitcoin is down
Nothing goes without Bitcoin (at least at the moment). If Bitcoin goes down, everything else goes down and stays down as long as Bitcoin does. Recently we had a lot of Bitcoin that was sold from the Mt. Gox insolvency administrator, pushing the price down again, when the market was thought to be pciking up again. And still they have more Bitcoin to dump into the market.
China, South Koreas and USA ICO Ban
All those countrys banned ICOs. So this should only affect the ICOs itself, but afterwards when trading on exchanges begins they can be purchased though (except for China I belive). I dont think this is a major reason.
Upcoming G20 ruling on cryptos
The last meeting of the G20 financial ministries did not lead to a conclusion yet. This is adding a certain amount of uncertainty for sure.
Upcoming ruling of US SEC about cryptos classifying as a security or not
Some furthermore uncertainty comes from the US wether they classify cryptos as a security or not. And the decision about this issue can come out in a week, a month or a year. Nobody knows for sure.
To sum up. We have a lot of Bitcoin dumped and a lot of uncertainty in the market, which may lead to the markets not picking up again. And in my opinion especially for institutionmal investors this is the main hurdle for investing into crypto.
But I think there are some other things to be consideres as well:
crypto is still not mainstream
Buying/selling and furthermore acutally using crypto is still way to difficult for most of the people on Earth. We have no really established crypto apps which are used broadly by the public. The only exception to this is Ripple/XRP. But this is only used by banks.
people got burned after the last bull run
Maybe also a lot of people that have put their toes into the big cryptolake have been burnt and not comin back so easily. When you invest in crypto you have to be patient and kind of cold blooded about the invested money. I believe most of those "new" investors were not.
Well you can say that number 5 doesnt count because we have already had a higher market cap. Then number 6 comes in handy :)
So thats it. My thoughts about this subject. Thank you for reading.
