Cryptocurrency: one of the greatest disappointments of 2018

The echo of the «Bubble Bubble» cryptocurrency was separated worldwide. Alas, if at the end of 2017, virtual currencies experienced a real boom, hundreds of crypto conferences were carried out, the souvenir products with Bitcoin enjoyed incredible popularity, and a huge number of events were treated in the title of Crypto, even those that have not yet been relevant to This year, this year enthusiasm and interest is noticeably weakened.

2018 can be bolden by the year of regulation, since the position of the regulators was crucial for market movements. In January, these were rumors about the ban on cryptocurrency trade in South Korea (subsequently with fake) and closing platforms for trade in China. In February, tightened its attitude to virtual currency

I will add to this hacking crypto-exchange, occasional periodically and bringing millions of losses, and thanks to these ingredients at the output we will get a ready-made result — the Bitcoin rate fell by the end of March by 50% from the level of opening of the year, trading at $ 6,600, which is 65% lower Maximum values recorded in December last year.

The remaining part of the spring and all summer quotes cryptocurrency conducted in the flutter dynamics. New technological breakthroughs adjacent to the news on the refusation of the SEC in the launch of the tools necessary for further expansion, such as

The decline in the price caused the triggering of stop orders, and investors seeing on their terminals, as they melt them even recently seemed beneficially placed capital, left the market and translated their money to Fiat «to better times.»

Desperate Hodlers held (and hold) coins to the latter, but new volumes are needed for growth, and so that they come, it is necessary that the market is regulated, reliable and, frankly, not so chalk as now.

What is $ 126 billion capitalization on the whole market? Such volumes are easy to manipulate, and large money loves wide liquidity. As an example can be brought to compare the amount that will be spent by pension funds in the United States to rebalancing its portfolios — this is $ 64 billion. That is, half the cost of all cryptocurrency of the world.

Even a long promised launch of the Bakkt system, expected for December, was postponed for the next year, and the last hope for growth was lost. Not immediately, but the course planned under the support of $ 6,000, before this holding from the fall of BTC / USD is already three times in 2018, and by the end of the year

In general, as an investment asset, in 2018, cryptocurrencies became one of the greatest disappointments. «One of», since the results of the year in the stock markets of the world also look very controversial — the leading indexes are threatened to close the year in the minus, completing the 9-year cycle of continuous growth, and in general December has already dubbed the worst month for the investor since 1929.

But it was not bad to earn on a cryptocurrency boom and his final in the outgoing year managed to those who used derivatives tools for the sale of Bitcoin. We are talking about futures and contracts for the difference that appeared last year, and allowed investors to earn at the fall of the superheated market.

Although few people managed to make money on these tools. Cumulative open interest in

Undoubtedly, the first quarter of 2019 will largely determine the further fate of the market. It is expected that it is during this period that the main dilemma cryptocurrency is resolved — regulatory. It is the foggy status of virtual assets and the lack of mechanisms for working with institutional capital is the cause of low reception and the fall in capitalization almost 8 times in a year.

Institutionals will not come to the market through cryptocreuses, they need appropriate tools and systems. The launch of Bakkt is scheduled for January 24, and many crypto enthusiasts are confident that the price will certainly grow.
As for me, it is not worth a hurry, because by itself the appearance of Bakkt absolutely does not mean the automatic price increase in the price of Bitcoin, and strictly speaking, the launch of the platform will give the opportunity to work to large players, but does not guarantee their mass arrival to the market.

What can really restart the market is the launch of ETF, which will give the beginning of intentional trends. The opportunity to delay the decision forever at the SEC is not, there are clear terms of consideration of requests, and in the spring of 2019 we will learn the fate of the industry.

Despite the sad dynamics in 2018,