Industry Experts Believe Bitcoin Will Have A Strong 2019 In Spite Of Bear Market
We are now in a bear market that affected most of the virtual currencies, most of them alt-coins, but it does not mean that Bitcoin is not ready for a strong 2019. Experts believe that the next year will be good for Bitcoin and virtual currencies.
Barry Silbert, from the Digital Currency Group, said that in the second part of 2018, Bitcoin and the market will consolidate, build infrastructure and take off in 2019.
The CEO of Circle, Jeremy Allaire says that investors are looking at cryptocurrencies such as Ether (ETH) as a commodity. According to him, people takes it as a commodity to ‘fuel’ decentralized applications (dApps) that are built on top of the Ethereum network.
In a similar way to Silbert, Mr. Allaire explained that investors will see great opportunities this quarter in those virtual currencies such as Bitcoin and Ether.
Gabor Gurbacs, from the firm VanEck, says that Bitcoin and the cryptocurrency market have sufficient liquidity and that they can properly be integrated in the current financial ecosystem. Moreover, he explains that investors look at Bitcoin as a safe haven where to place their funds in order to reduce volatility.
In addition to it, Bitcoin is used as a digital gold, as a de-risk asset. If investors want to find an asset that is not correlated with other markets, then, Bitcoin is a great option.
About this topic he said:
“Bitcoin is used as digital gold today, it’s a de-risk asset. Basically, if someone wants to outlay systematic risk, then one would go to assets like gold or digital gold, Bitcoin, and investors are looking at uncorrelated assets to their portfolios. So, I would say, as a message to investors, bitcoin is a two-third a safe haven asset or digital gold, and one-third trades like a tax stock.”
However, we must mention that during the last crisis experienced by Turkey and the United States, investors did not go to Bitcoin, and the crypto market had a high correlation with other traditional markets.
Arthur Hayes, founder of Bitmex, said that the company had a good year, even when the markets were falling. They had the best month in March, 2018, and for the spot exchanges that do not have leverage the peak volumes were in December, 2017. Furthermore, he says that if the really continues, volumes will increase and that through the third and fourth quarter, which have generally been positive in the past for Bitcoin ‘because everyone come back from their summer vacation.’
Alexis Ohanian has also been giving his comments. He thinks that Bitcoin and blockchain technology are helping things to work and scale. In addition to it, he said that some investors are in the market for the long term and not for short or medium-term periods of time.
Thomas Lee, Fundstrat’s Global co-founder, showed that Bitcoin lost an important part of the market, what experts call as ‘market dominance,’ during 2017. But this year has been different. In 2018, Bitcoin recovered part of the dominance in the market reaching 54% in the last hours, the highest level since December 2017. For him, bitcoin has been selected by investors as the best asset to invest in. Other alt-coins have lost more than 90% of their value since their all time high.
Meltem Demirors, from Coinshares has also given her point of view about how the market is performing. She said that there is a small number of users using the crypto and blockchain apps on a day-to-day basis. For her, the technology is immature, the apps are ‘clunky’ and this is causing users to stay away from them.
Jim Cramer, CNBC anchor, said that Bitcoin may fall even further to $800, $1,000 in the short or middle-term, where investors could feel that is a comfortable level to stay.
Scott Nations, from NationsShares said that he is desperate to be short on the CBOE September bitcoin futures contract, waiting for $5,500 dollars.
“I don’t see any value at all, it’s even worse than gold,” he said. “I want to be short.”
Founder of BKCM LLC Brian Kelly, explained that he sees panic selling in the market at the moment. He says that this is one of the best entry points for Bitcoin around $5,800 or $5,900 dollars. After it, we could see a new bull market and an upward trend.
At the moment of writing this article, Bitcoin is being traded around $6,400 dollars and has a market capitalization of $110 billion dollars. In the last 24 hours it is registering an increase of over 4%.
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