Investment funds and cryptocurrencies

Investment funds and cryptocurrencies

The prices of Bitcoin and major cryptocurrencies have stalled so far this year, despite repeated predictions that a bullish phase in bitcoins could be around the corner, falling prices are masking growth underlying adoption and institutional infrastructure, according to the new bottom of equity coverage in the stock market. 

The price of Bitcoin has plunged by 70%, peaking this year, causing bitcoin to skyrocket near $ 20,000 before falling above $ 3,000-4,000 in 2018, where it has since collapsed since. .

Investment funds and cryptocurrencies

Bitcoin adoption and institutional investment are considered two key indicators on which the price of the cryptocurrency is based.

Soon we will have a response to the regulation of Bitcoin to start operating in investment funds. Once the conversion has been made, investment funds will begin to include cryptocurrencies in their portfolios to attract investment, which will further increase the price of Bitcoin, which could become profitable investments long-term.

Many investors and traders in bitcoin and cryptocurrency exchanges are waiting for news from regulators or around the growing institutional adoption before deciding whether to invest more money in the crypto sector. However, Circuit Capital maintains that the fall in the price of bitcoin in the last 10 months has obscured the increasing use of cryptocurrencies among consumers and investors.

"Despite what is happening with pricing, we are seeing adoption grow and many people are looking to scale crypto businesses," circuit partner Eugene Ng told Bloomberg. "We are beginning to see that talent is moving into this space and the development of the institutional infrastructure."

Circuit plans to launch in the first quarter of next year after raising $ 30 million and another of its four partners, former technology analyst Bo Nam, expects Circuit to increase its assets to more than $ 100 million.

Meanwhile, Circuit has developed a bitcoin and cryptocurrency index that measures the widespread adoption of blockchain technology supporting digital assets, on which its bold prediction is based. 

The benchmark, based on more than 10 data points, including the number of active crypto wallets, transaction volumes, computing power, web searches for bitcoin terms, and industry hires, shows that the adoption of crypto and bitcoins it is on an upward trajectory.

Searches for Bitcoin and cryptocurrency on Google have followed the rise and fall of prices in the last 18 months.

On an october blog postCircuit's Ng described what he believes is holding back the bitcoin and cryptocurrency market.

"The following fundamental factors could explain why crypto has failed to react to any positive headlines in the past six months," Ng wrote. “Fund redemptions, the retail community does not participate, the purchase of funds through equity capital not ICO, the institutional level market infrastructure is not ready for institutions to fear losing, a possible rehypothecation problem (#FakeGoodNews) , and smart money short »

“The most compelling market narrative for the next bull cycle is that institutions will be the main catalyst that will drive the market. For these traditional entities to gain direct exposure to crypto, they must be able to trade, liquidate, and store assets institutionally. '

“I am excited to start 2019 because it will lay the foundations for a new market. The development of this infrastructure will grow along with the clarity in the regulations and the offerings of regulated investment products that will bring massive flows of capital.

Ng's comments echo a prediction made earlier this week by the respected CEO of bitcoin exchange Binance, Changpeng Zhao, who said he expects another bitcoin bull run to happen "sooner or later."

Changpeng Zhao, often known by his initials CZ, said that while bitcoin and cryptocurrency trading on Binance, the world's largest exchange by volume, has dropped by nearly 90% since January, he still believes that the company and the market as a whole are healthy.

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