Countries are starting to realize that they will either adapt to the new reality and support the growth of the crypto industry or be left behind.
14 December 2018 could mark the end of the bear market.
A growing number of countries plan to support the development of the crypto industry.
A tremendous number of crypto-related projects will launch in 2019.
In the first two weeks of December, the market continued with the downtrend and lost an additional 20% of its value. The market bottomed on 14 December and then gained 44% in the following nine days. The jump was followed by a cool-down during the holidays, concluding the month with a total negative performance of -4%.
Solidum 20 Market Cap Weight | December 2018 (Source: CoinMarketCap, own calculations)
There are several signs that 14 December could mark the end of the bear market after 11 months. In my previous monthly commentary, I shared an observation that the mainstream media was full of gloomy articles about blockchain and cryptocurrencies and that the market sentiment was extremely negative. In December, we saw a reversal of this tendency. One notable example: Time Magazine published a very positive article about the importance of Bitcoin titled “Why Bitcoin Matters for Freedom." On top of that, the market sentiment is also improving. Price increases are followed by the increase in volume which is generally a bullish sign.
In the November commentary, I also wrote about the positive developments in South Korea. Similarly, in 2019, a growing number of countries plan to progressively introduce legislation to support the growth of the crypto industry. We can see some positive developments even in the United States where two congressmen introduced two bills to ”position the United States to be a leader in the cryptocurrency industry.” We are entering a stage where more and more countries are starting to realize that they will either adapt to the new reality and support the crypto industry or be left behind.
Each month, we come across new developments which will help to bolster the mass adoption of blockchain and cryptocurrencies. Bakkt, one of the most significant players to enter the crypto market in 2019, completed a $182 million first funding round with a broad base of investors. Calgary, one of the largest and fastest growing cities in Canada, has launched its own digital currency, Calgary dollar, which will be used to pay for services and goods at local shops. One of the biggest news of 2018 is that Facebook, with its 2.5 billion users, is developing a stablecoin for transfers in WhatsApp.
In terms of development, 2018 was the most active year for crypto in its history and we can expect a tremendous number of crypto-related projects to launch in 2019.
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Solidum Capital also manages the Solidum Prime digital portfolio on the ICONOMI platform. You’re also welcome to read our Solidum Prime Monthly Report for December 2018.
DISCLAIMER:
This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of cryptocurrencies and the functioning of the cryptocurrency market.
