Investment experts expect institutional investors to participate in the Crypto market in 2019. This should in turn drive Bitcoin prices higher and also reduce volatility.
December 31, 2018 | AtoZ Markets - The Crypto market saw red this year. Bitcoin lost about 84% from its all-time-high to end as one of the worst investments of 2018. Aside the huge dip, Bitcoin and other Cryptos are also known for their high volatility. The usual huge volatility and 2019 bearish run has discouraged many investors. Despite the negativity surrounding the Crypto market, some investment experts expect prices to surge in 2019 as institutional investors enter the market with their deep pockets. According to Henrik Andersson who is the chief investment officer of Apollo Capital Fund in Australia:
During the coming year, we will see a gradual adoption from institutions
Did Bitcoin Bears Scare Off Institutional Investors?
There was an influx of institutional investors in late 2018. In the summer of 2018, the multi-billion dollar Harvard, Stanford and Yale investors stunned the Wall street after announcing that they had invested in cryptocurrencies. Tis did not encourage more investments as the bearish nature of the market was not encouraging. The market lost more investors who would have had some of their funds invested in the Crypto market. However, some market analysts believe with the market regulated next year, there should be more investors competing to have a share of the market. This would in turn drive down the volatility usually associated with this market. In addition, the Crypto market could be buoyant if the stock market continue downside next year. Since Crypto market are not in any way correlated to the stock market, it might be seen as an alternative during volatile stock market periods. It's been wildly believed that for the Crypto market to recover next year, a huge institution must be build around it. It should also be regulated.
Will the Crypto Market Be Regulated and Officially Legalized?
For the industry to survive, many believe it should be legalized in most countries and eventually be regulated. The move for regulation has already started. In December 2018, the United States legislators proposed a legislation designed to prevent Bitcoin price manipulation, enhance the market security and positioning the US as a market leader. Observers and analysts believe legislation would make the industry sort of legitimized. Congressmen Darren Soto and Ted Budd believe the Crypto market has a potential to bolster the economy and therefore proposed for its adoption in the country.
France Pushing For Crypto Adoption
French legislators have joined their Unites States counterpart and are aggressively asking for blockchain adoption. Some even suggested that the European Central Bank or Bank of France should issue its own cyrptocurrency. A french legislator, Laure de Raudière asked that France should move quickly ahead of China and United States to explore blockchain technology and Cryptocurrencies.
If this positive sentiments should continue next year and major countries adopt blockchain and cryptocurrency and a huge institution is built around it, it's expected that volatility will be beat down and the market will be stabilized. With efforts to curb insecurity succeeding, the Cryptos could rally significantly in 2019.
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