Chinese Currency Policy Analyst Believes the Crypto Bear Market Isn’t Over in 2019
It seems that Chinese analysts are not bullish about Bitcoin (BTC). There are some experts that believe that in 2019 Bitcoin will keep falling. According to an article published by the local news site Beijing News, 2019 does not show obvious signs of rebound.
According to Xiao Lei, a crypto analyst, the bear market in the crypto space is related to the fast price increase experienced by virtual currencies back in 2017. Back in 2017, Bitcoin grew more than 20 times after moving from under $1,000 at the beginning of the year to $20,000 in December. After that moment, Bitcoin dropped down to $3,200.
The cryptocurrency specialist Huang Liang explained about the market:
“The cryptocurrency market is currently a transaction-driven zero-sum game. The money you earn can only come from the money in someone else’s pocket. You need to have more noobs enter the market and buy it at a higher price.”
There were some newcomers that lost their funds after investing in cryptocurrency scams and fraudulent companies. This has affected the whole space and pushed regulatory agencies to participate in the market in a more active way than before.
According to a senior analyst at the TokenClub Institute, Sun Hang, the crypto market will not be rebounding anytime soon because supply and demand are not balanced. The Chinese government has usually been against digital currencies and it has taken very hard measures against it. For example, it has decided to ban al crypto-related activities in the country. However, Bitcoin miners remain operating in the country.
What these Chinese investors and analysts say contrasts with what other Western analysts believe. This is the case of Michael Novogratz that believes that the market is going to grow in the near future. Jeremy Allaire, Circle’s CEO, said that Bitcoin price will be growing in the next three years.
Clearly, not all the virtual currencies in the space are going to survive. Indeed, some of them are not going to make it through this bear market. Nevertheless, those that show good products, professional developer teams and crypto experts behind will eventually be able to keep operating in the market.
At the time of writing, Bitcoin and other digital assets skyrocketed in the market. Bitcoin surged more than 5% and it is currently being traded close to $4,100. Litecoin (LTC), another popular digital asset, has just surpassed Stellar Lumens (XLM) registering the largest price increase among the top 55 cryptos in the market (11.10%).