Will 2019 be the year for the cryptocurrencies

Unfortunately, we did not receive the mass approval of the cryptocurrencies, which was supposed to take bitcoin to a new peak. Can we hope this will happen in 2019?

The 10th birthday of the biggest cryptocurrency was celebrated, with the price being 80% lower than the peak in 2018. Over the past decade, bitcoin managed to overcome every obstacle and climb from every low, lifting the community at a different level. The current downgrade, however, is far worse than any other in the past, and everyone is facing the abyss, as traders have never been more negative.

So what's different this time?

Let's look at the decade-long rise of bitcoin as a four-phase rally that started very slowly around 2008-2011. This phase is characterized by anarchists who wanted to blow the world and now represent less than roughly 5% of all portfolios. This first wave found the first reason for using the cryptocurrencies and dominated the search for BTC from the real HODLers.

The anarchists surrendered the reins of the libertarians who wanted to save the world through BTC, and I think they now account for about 30% of the portfolios. They quickly joined and stimulated growth in 2012-2016. They tried to use BTC as a payment method and successfully handed over the reins to the millions of speculators who came from the land of the money to search for new riches from the crypto industry.

In my opinion, speculators make up about 60% of all traders and are responsible for raising the BTC to its record high in 2018. They planned to hand over the relay to the fourth racers, the global institutions that were supposed to lift us from here to infinity. and above it.

These institutions, instead of finishing the rally as planned, launched the relay as "did not buy in the bitcoin balloon", and even shortened the cryptocurrencies in the futures markets, which is the reason for the 80% drop from the top.

The big question about 2019 is: Is enough institutions going across the coast and joining us? Or will they stay on the bench and even short the market?

Here are some reasons why I believe bitcoin will recover greatly in 2019:

1) According to Bloomberg, the total number of retail accounts doubled in 2018 from 18 million to over 35 million, which signals continued interest despite the crash.

2) The volatility and trading volumes of the BTC tripled in 2018, and we also saw big actions by the institutions to hedge their short positions. This may mean that we have reached the bottom and can expect a positive change in the sentiment.

3) There are plenty of good news set up for 2019 that will boost Bitcoin's cash inflows as the safest cryptocurrencies. This includes new ETF and ETN products.

4) A record number of institutions are launching new block projects, which also signals a new wave of interest in bitcoin and the opportunities it brings to Fintech.

Source: Finance Magnates

Photo: pixabay.com

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