Is cryptocurrency down and out?
For nine months now the cryptocurrency market has been on the steady decline. I will admit I have lost half of my investments into cryptocurrency because of my belief in holding. Most altcoins are down 80% from what they once were at in their all-time high, according to CNN. Even bitcoin is down 68 percent, but things might be looking up. Mike Novogratz believes that the market might have finally hit bottom. Mike went on Twitter on Thursday to show a graph to explain the market situation saying “This is the BGCI chart...I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble... markets like to retrace to the breakout..we retraced the whole of the bubble. “ Adding #callingabottom To view the link to his twitter click below.
The future
In July Mike Novogratz said that he believes in 12 months the market would hit 800 Million dollars, roughly matching the all-time high. Novogratz thinks this because he believes that institutions would begin storing cryptocurrencies with what was called "mainstream regulated custodians." Goldman Sachs is one that is rumored to be planning to be such a custodian. Such rumors have come from multiple sources, says CNN, though Goldman Sachs has not confirmed the story. Having a large bank being able to store cryptocurrency assets would dramatically help the cryptocurrency market as larger investors would feel more at ease dealing with an institution they already know. On top of this Tim Draper from Bitcoin blames the fall of cryptocurrency on ignorance. Saying that comparing it to the dot-com boom " The internet went after industries that were $10-100 billion dollar markets, cryptocurrency will go after trillion dollar markets – these are finance, healthcare and insurance, banking and investment banking, and governments." While Blockchain is making its way into all the industries, Draper listed, Cryptocurrency has yet to get there, though if it does that will undoubtedly be a massive boom for the market. Although getting big banks and corporations in on the cryptocurrency market would dramatically help the market, its hard to say when this will exactly happen, and sadly others have called a bottom to the market before only for us to watch it decline further. At this point, it is important to remember why you got into cryptocurrencies in the first place and decide for yourself where you believe the market may be headed and as always do research and stay informed.
-Written by james Hepburn