Is There Any Chance of Revival of the Cryptocurrency Market?

I do believe there is and here are 5 Reasons Why I Believe the Crypto Market Is Still Alive and Ready to Take Off

1.) Institutional Investors are coming

I believe that in 2018–2020 we’ll see a huge wave of institutional investment in cryptocurrency. Institutional investors are hedge funds and other sophisticated investors. Remember that they wouldn’t enter a market about to burst.

These investors bring lots of capital, and the potential to significantly increase the total market cap for cryptocurrencies. They've been hesitant to enter the space, mainly due to a fragmented trading landscape and lack of liquidity (beyond the ideological reasons some stay out). Yet, there’s been an increase in tools and resources for sophisticated investors to use. Companies are creating liquidity providing options and developing trading terminals more like what you find on Wall Street than a typical traders exchange.

2.) Bitcoin & Crypto ETF's

The VanEck SolidX Bitcoin ETF is on the table for approval by the SEC.

The ETF trust investment objective is for the shares to reflect the performance of the price of bitcoin, less the expenses of the trust’s operations. The trust is not actively managed.

Having an SEC approved ETF is just another way both institutional investors and the public can get involved in crypto with less risk.

As a benchmark, stocks globally have a market cap of over 70 Trillion. If just 1% diversified into cryptocurrencies, we would be at all-time highs. That’s just for stocks and 1% is a very conservative figure.

3.) Public Interest is at its Lowest Point

Warren Buffett famously said to be “Fearful when others are greedy and greedy when others are fearful.”

Recently, the majority of the crypto market are panicking, many newer investors are down by a significant amount and public interest is at a relative low. Investors are losing faith and the public are just not interested in cryptocurrencies during a bear and/or stagnant market.

The problem with the mass public is that they only get involved during mass rallies, hence the December rally we had, but for the best ROI buying when there is little interest and fear in the market is the best move.

In my opinion, when public interest is at relative lows, it is a wonderful time to buy and get deals to hold. Warren Buffett knows what he is talking about. But it's still a good idea to only hold coins you believe in and ones that have the technology and following to stick around for the future.

4.) Goldman Sachs, Circle and Poloniex

Goldman Sachs' Circle is quietly making moves in the crypto space.

Circle is a global crypto finance company on a mission to make it possible for anyone, anywhere to help change the global economy.

From Circle's Website: "Circle was founded in 2013 because we believed money should work like the internet — open, secure, free, everywhere. Today, we offer four products. Circle Invest makes it easy to invest in crypto even if you’ve never invested in crypto. With Circle Pay you can send money like a text — across the table or the ocean. Our OTC crypto desk Circle Trade moves over $2B each month. And our addition of Poloniex welcomes one of the world’s largest crypto exchanges."

I believe Circle will be a great driver to mass adoption that we will see in this space. The public are lazy, people do not want to wait weeks for exchanges to verify them, and they certainly do not want to set up wallets and must send altcoins to specific altcoin exchanges.

It’s difficult and takes time to learn. For the average person, they will (and have) simply not bothered investing in cryptocurrencies because the barrier to entry is too high.

Circle's Benefits and Ways They Will Help Drive Adaption:

• $1 Minimum Buy In. Meaning literally anyone with access to the internet has the opportunity to invest in cryptos.

• Instant deposits. No more waiting 1-5 business days for funds to clear. Instant deposits will mean the markets can rally a lot quicker than in December (think about all the bank holidays we had then).

• Circle also have OTC (over the counter) trading desks in several locations globally. When institutional investors buy cryptocurrencies, they do not go to exchanges, they do it over the counter. Circle moves over $2 Billion worth of transactions monthly, so they can easily facilitate institutional orders.

If Institutional investors thought the crypto market was dead, why would they spend over $400 million buying an altcoin exchange (Poloniex) and go through the effort of creating all of the above?

5.) Blockchain adoption is increasing

All the big tech players are now getting into blockchain from IBM to Microsoft. These guys know the power and flexibility of the blockchain and they want a piece of the pie.

There was an IBM survey that found that 65% of banks planned to launch blockchain projects within three years, while organizations and national governments (e.g. in China and the EU) have begun attempts to foster the technical standardization necessary for greater adoption.

There is simply too much going on in the background for the cryptocurrency markets to be over. But the big money wants you to think that the market is dead, because when you sell, they will be the buyers on the other end.

I am a firm believer in Blockchain and Cryptocurrencies to where I will continue to invest and be a cheerleader for their successes.

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