University Of Pennsylvania Economics Professor: 3 Reasons Why The Crypto Market Is Ready For A “Rally”
Economics Professor, Mourdoukoutas Identifies 3 Reasons Why The Crypto Market Is Ready For A “Rally”
Professor and Chair of the Department of Economics at LIU, New York and a contributor to Forbes News, Panos Mourdoukoutas, identified three possible reasons why a “rally may be suitable,” especially for cryptocurrencies like Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], EOS and others (https://www.forbes.com/sites/panosmourdoukoutas/2019/02/21/3-bullish-signs-for-bitcoin-ethereum-litecoin-eos-and-other-cryptocurrencies/#28955e663f55). Here’s an overview of what he has since shared:
#1 The Presence Of Breadth
According to the professor, the presence of “breadth” is a key indicator that the crypto market might witness a bull run.
In particular, he summarized the top 100 cryptocurrencies into two categories: “dropped in value” vs went up. In doing so, he found that 93% of the cryptocurrencies have gone up in value in the last seven days compared to only 7% that have gone down.
He sees this as being a type of
“confirmation that the rally has strength.”
Furthermore, he trusts that such growth implies the flowing of new money into the market, as opposed to existing money that only circulates between the digital assets.
#2 Technical Momentum Of Crypto Rally & Interest In Blockchain Projects
The next argument Mourdoukoutas makes in terms of a soon-approaching rally is “the technical momentum of the crypto rally.” What he means by this is – which he explains by sharing CEO of Blockchain Consultants, Michael Noel’s POV – that Bitcoin’s rise, for instance, is a result of “fiat and stable coins” and not “other cryptocurrencies”. He sees this as a sign that interest in traditional currencies might be gradually decreasing.
He also added that crypto market is ready for a rally because of the interest within Blockchain projects. In other words, we are starting to see more traditionally-operated firms trying to understand the specs of blockchain technology and how it can better their business, better yet, their industry altogether. Some of the examples of partnerships that the professor combined include that of Mastercard and Stellar, Western Union and Ripple and NASDAQ Bitcoin index.
#3 Institutional Investors’ Attraction To Crypto Market
At some point during the crypto market’s plummet, many opinions have been published remarking that institutional money is essential in picking up the market and potentially helping it overcome its infancy stages. The evidence provided here comes from Founder and CEO of PCG Advisory, Jeff Ramson, who was quoted,
“Each day we are hearing of more well-known [players] investing into crypto/blockchain infrastructure, and I believe Bitcoin is the proxy […].”
Ramson was also quoted giving the example of JP Morgan wanting to create its respective cryptocurrency, adding that such moves reflect
“credibility to the space”.
Are you convinced that breadth, technical momentum, and interest in Blockchain projects and finally, institutional investors are adequate reasons to expect a bull run? If you think otherwise, let us know what other factors could justify this in the comments below.