Cryptocurrency Lull To End Soon, Say Experts

TheDigitalArtist / Pixabay

Almost all digital currencies have been going through a rough phase over the last few months. However, the cryptocurrency lull could soon come to an end, predict not one but many experts. The predictions come at a time when almost all major virtual currencies are declining. On Thursday, Bitcoin was down 0.9% to $6,453.14, Ethereum declined 2.1% to $198.76, and Ripple was trading 2.3% in the red to 45 cents. Bitcoin Cash also tumbled 2.1% to $446.72 and Litecoin fell 0.9%.

Cryptocurrency lull is nearing the end

Contrary to the recent trend, experts have reasons to believe that the cryptocurrency lull will be over soon. Mati Greenspan, senior analyst at eToro told MarketWatch, “It’s only a matter of time now.” Greenspan believes the “flat-line pattern” could remain for a few more months. However, the analyst sees “signs of excitement boiling underneath the cool price action exterior.”

The increasing number of transactions per second suggest that the cryptocurrency lull is nearing the end. After peaking towards the end of 2017, the transactions per second began declining in early 2018. The transactions have started going up again, though the growth is not that fast. “This is a classic indication that we’re nearing the end of the flat cycle.” The rate of transactions per second reflects the scalability of the blockchain technology, says MarketWatch.

Fundstrat Global Advisors technical strategist Rob Sluymer also told clients in a research note that the next couple of weeks could “prove to be a near-term pivotal for many cryptocurrencies.” Most virtual currencies have been trading “in narrow consolidations” for several weeks. Now they are testing some key technical levels.

Separately, Genesis Trading CEO Michael Moro told CNBC Fast Money that the $5900 – $6,000 could be the bottom of Bitcoin. At these price points, people shorting Bitcoin could close out their position and buy back in. Genesis Trading has loaned over $500 million in Bitcoin, Ethereum, and other cryptocurrencies to institutional investors. Michael Moro predicts Bitcoin will bounce back to $10,000, though he didn’t offer a timeline.

Another expert, Pantera Capital co-CIO Joey Krug said in an interview with Bloomberg that the cryptocurrency lull is almost over. Krug predicted that the crypto market could skyrocket as much as 10x by 2020. If it happens, it would be an impressive growth within just two years. Krug added that the scalability improvements for Bitcoin were necessary to trigger an upward shift in prices.

Even though Bitcoin, Ethereum, Ripple and other currencies have tumbled in the last few months, Krug told Bloomberg that the mainstream market has started accepting Bitcoin. The transaction capacity and the number of transactions have to go up to streamline digital currencies into the consumer market.  Krug believes that Bitcoin, Ethereum or Ripple will never be able to taste the same success as Visa or MasterCard, but they will be successful.

Regulators remain a hurdle for Bitcoin

Bitcoin reached an all-time high of around $20,000 in late 2017, but the currency has undergone intense volatility and decline since then. It fell to around $5,800 in July. Ethereum and Ripple have also been struggling. Recently, noted economist Nouriel Roubini warned during a US Senate Committee hearing that cryptocurrencies are the “mother or father of all scams and bubbles.” Roubini is known for predicting the 2008 economic crisis. He has been bearish on digital currencies for a long time.

The International Monetary Fund has also expressed concerns about Bitcoin. The IMF said in a report that cryptocurrencies posed a great risk to the current global financial system, even though they had immense profit possibilities. Cryptos also demoralize cross-border payments, and could create “new vulnerabilities in the international financial system.” Some believe that Bitcoin, Ethereum, and others could fall further amid the regulatory crackdown.

Meanwhile, countries such as Switzerland and the United Arab Emirates are laying the groundwork to become the international hub for cryptocurrencies. Other countries like China and the US haven’t shown the same level of enthusiasm. In fact, China has banned Bitcoin mining to prevent virtual currencies from affecting its existing financial system.

In the US, the SEC is still considering whether to approve a Bitcoin ETF (exchange-traded fund). On the other hand, ICE in collation with Starbucks, Boston Consulting Group and Microsoft is preparing to launch the Bakkt platform next month.

Here’s how we can help you do what you do best—grow your business.

Like Us On Facebook – For Business And General News: ValueWalk – For Tech And Science News: ValueWalk Tech – For Tech Insights, Technical Questions and Queries: Follow Our COO, Sheeraz Raza.


Be the first to comment

Leave a Reply

Your email address will not be published.


*