Cryptocurrencies have taken another nose dive over the weekend- on no new major news-driven substance – majorly outspreading the losses from Japan’s FSA crackdown on 6 native crypto exchanges and sending Bitcoin back below $6,000 for the first time since Feb 6th. If experts are to be believed a lot of panics has led to this selling and doesn’t hold any substance in long run. Here we give you some positive voices and some reasons to still stay positive.
Strong comments coming from experts despite all the bearishness
On June 23rd, Brian Kelly made a few points on the show “Bitcoin Funeral,” which showed sheer optimism that this fall is just a new beginning and investors shouldn’t panic. He outlined that Bitcoin will recover and will touch USD 10000 as this negative sentiment from investors is signalling nearing of the bottom.
Earlier this week Brain Armstrong had also stated that this correction is healthy for the industry stated to his staff that hen there is hype, people are irrationally exuberant. When there is despair, people are irrationally pessimistic. neither is true. According to him, the reality is always somewhere in the middle, more correlated with real usage (transactions per day) than the price. He also mentioned that this downturn gets rid of the people who are in it for the wrong reasons.
Another eminent voice in favour of cryptos, John McAfee, tweeted regarding this fall. According to him, this downfall is just reduction in return in short-term not actually an end of cryptos. According to him One year ago to the day, Bitcoin was at $2,560 and today it is touched $6,000. That is a 140% increase. This year to year increase has been accelerating significantly and faith in cryptocurrencies will be soon restored.
Reasons to be positive
Throughout 2018, several sell-offs of tens of thousands of bitcoin were done by the trustee of Mt. Gox. This led the market to crash, stopping BTC from gaining positive momentum at minor upswings. With the Tokyo court now stopping that Mt Gox bitcoin sell-off till 2019, it would definitely stop this bizarre selling once the dust settles. According to Brian Kelly
“Mt. Gox is going into rehabilitation and they’re going to distribute the rest of the $1 billion worth of bitcoin. But here’s what is great about that, they’re not going to distribute it until quarter 1 of 2019. All of the sudden everyone thinks there is going to be a wave of selling. Not happening now,”
The hack of Bithumb has woken up South Korea. South Korea, the third largest cryptocurrency exchange market behind the US and Japan, after the hack, has started preparing a cryptocurrency regulatory framework to regulate cryptocurrency exchanges as banks, to prevent hacking attacks and money laundering, while legitimizing the cryptocurrency sector to protect investors and set an industry-wide standard for businesses.
The same stringency of regulations is picking up in the US and across Europe. Some countries in Europe such as Sweden and Estonia are testing electronic versions of their fiat currencies.
A lot of exchanges are starting crypto-based futures while a lot of wall street traditional investment firms are setting up crypto desks for its clients. Coinbase has opened an Index Fund for institutional investors and a lot of firms are contemplating ETFs. This would shift a lot of Wall Street Money to Cryptos making it stronger and more committed.
The current downfall is triggered because of the Japanese FSA asking 6 exchanges to improve their business conditions. This might not be good in the short run as they are stopping new account opening but with a long-term view, they seem to clean up the system and making it more efficient. This, Japanese government’s move to tighten regulations, clean up the cryptocurrency market, and legitimize the Japanese cryptocurrency sector is a positive development for the long-term.
There is a lot of positive to draw from and every positive reason just gives an assurance that the future looks better and brighter.
Is this the end for cryptocurrencies or a new beginning? Do let us know your views on the same.