The crypto market in 2017 spiked in terms of popularity and market cap. That was the time when Bitcoin reached almost $20,000. However, if you will look at the crypto market today, you won’t fail to notice the stark difference. But for the hodlers and those who truly believe in the potential of blockchain tech, it isn’t the end yet.
And if there is any reason last week to be hopeful regarding Bitcoin and the rest of the crypto market, it was the Consensus 2018 conference. In the past, Consensus conference brought bullish run for cryptocurrencies. In fact, Tom Lee of Fundstrat Global Advisors even predicted that it would’ve created a market rally.
However, not even a rented Lamborghini and Snoop Dogg could prevent the inevitable. According to Coinmarketcap.com, the entire market sank by $52 billion since May 11. In fact, Bitcoin dropped by 5.2% this week dropping to $8,003.60.
Is this a sign of things to come? Or perhaps, it is still quite early to predict? Arthur Hayes, who is a crypto exchange executive responsible for renting the Lamborghinis, predicted that Bitcoin is going to surge to $50,000 by the end of the year. B
Of course, there isn’t anything surprising regarding the cryptocurrency price drop. However, it is also surprising mainly because there wasn’t much of a bullish run despite after a conference.
So what exactly caused the losses despite the Consensus conference? It could be due to the unmet promises of the crypto market. For Sonny Lu, who works as the chief executive officer for blockchain-based logistics company VeChain Tech, he said that “The quality of projects and speakers were not really as good as expected”. He mentioned that “I guess people just got disappointed”.
Still a Bright Future Ahead?
Though the entire market is bearish, there is a demand for professional money managers especially now that the regulations in the US and other parts of the globe are already attracting institutional investors. There are already a number of Wall Street pros who think that the market is far from a speculative bubble that some economic experts earlier predicted.
Tim Draper even made a bold prediction that Bitcoin would reach $250,000 by 2022. This well-known venture capitalist and inspiring entrepreneur had his past prediction come true when he mentioned in 2014 that Bitcoin would be worth $10,000 in three years. He also believes that, in the future, people are going to spend cryptos such as Bitcoin in mainstream situations. And eventually, he believes that cryptos will replace credit cards.
Issues in the Cryptocurrency Market
There are a number of issues that you may encounter in the crypto world today. One, of the things that make cryptocurrencies highly volatile, is due to the regulations implemented this year. And since it is a new market, it remains a speculative industry. Is crypto ever going to be bullish any time soon?
Is the crypto market expected to go up anytime soon especially now that there are institutional investors that are willing to participate in the crypto world? Though Consensus 2018 didn’t live up to the hype,