In the final months of 2018, Bitcoin, which was trading in a tight range of $6,100 to $6,600 from June through November, broke down and continued lower to $3,100 is a shocking sell-off that triggered aggressive capitulation selling. So after a long and painful grind lower, crypto selling exploded and by the end of November 2018, the market was in a weak mental state with many investors openly saying they had thrown in the towel.
This sell-off raised questions as the top Bitcoin gurus on Wall Street started to question the future of this digital and other digital assets. We listened to a presentation by Tim Lee of Fundstrat and he seemed to be the only one who had solid, well thought-out scenarios for the future of Bitcoin. Mr Lee pointed to some positives that few people are looking at. Sure, the high in Bitcoin in December of 2017 was $19,783.06 then it dropped 84% throughout the year with the shocking sell-off in November casing interest in the market to wane.
We See Positives at Classiarius – We Like Bitcoin
We at Classiarius are looking closely at one key factor. Despite the value of Bitcoin and Ethereal falling and the “cryptocurrency craze” fading and investors moving on, the institutional investor interest has increased and the regulatory oversight has improved. There were latterly hundreds of cryptocurrency fakes and frauds in 2018 who ended up paying heavy fines or went to jail as the SEC, Securities and Exchange Commission penetrated this unruly market.
In 2018, a wave of insertional investors as well as banks started to invest in cryptocurrency infrastructure. So while the number of individuals trading crypto has dropped significantly, the number of institutions showing interest is increasing – a positive sign for a long-term stable and trusted market. Still the digital ETF has not received approval – after 7 tries in 2018 – but there is optimism. Stablecoins are now taking the lead as these fiat pegged products act as hedging mechanisms – so there is promise for 2019.