This post was most recently updated on December 5th, 2018
The long crypto bear market which continues from 11 months till now, seems to be accelerating more the last days hitting the lowest levels of this year. We are probably in the 2014/2015 sentiment when everybody was talking about crypto capitulation. We see everywhere in twitter people claiming that their portfolio was completely destroyed and they are leaving the cryosphere permanently.
We already have seen the plebes leaving cryptosphere time ago, now it is the turn of the Holders to leave. This sounds perfect to crypto fund managers. This is exactly the sentiment that happens when the market is about to reverse. And probably this is the best time to start a crypto fund.
Here it is 5 reasons why we believe that the bull run is going to happens soon.
- Many financial institutions are building crypto trading infrastructure. Among the well-known stories about Goldman Sachs, Fidelity or Bakkt there are many which did not draw too much attention like DRW and TD Ameritrade (ErisX), BlackRock and Coinbase, Nasdaq, and the NYSE, and others on the way. Probably it is a better time to start a crypto fund now than in Q4 of 2017. Days ago Swiss regulators approved a Cryptocurrency ETP which will launch the next week.
- Volume on OTC markets is going up, and we are talking about the buyers. The smart money in entering crypto from the OTC markets taking the opportunity of the 2018 bear market to buy “digital gold” for cheap and hold it for some years. Even if the price goes more down the OTC volume of buyers will only grow more.
- The SEC just gave direction (via enforcement actions) that should encourage the tokenization development: The most recent enforcement activities by the SEC, reproving two different ICO’s, gave further direction to the tokenization development. The message was clear ICOs aren’t illegal and we are not against them just check with us and register and you will be fine. The enforcement actions taken against ICOs recently were small fines compared to funds raised from them. Also, neither claimed any fraud about ICOs.
- Altcoins without a real project are going to zero. This is a healthy event because in the 2017 hype many garbage coins toke off pumping the price showing rented lambos with their logo, but without any serious team behind the project. Those coins will get destroyed completely before capital consolidates to real projects like Bitcoin, Ethereum, Litecoin, Monero, Stellar, etc. Coins with developers trying to build something useful that lasts.
- Bakkt will launch on December 12th. Opening the door to tier 1 institution to buy and trade crypto and having 10 times the size of CME and CBOE Futures, Bakkt will have a big impact on the crypto world. Institutional investors will be able to trade crypto on the ICE exchange just like they do with gold, silver, oil etc. Just to give an example, the daily trading volume of gold futures is 200 billion. We all remember the big impact had CME and CBOU the last December when the bitcoin price hit the $20.000. A similar reaction is expected from the market upon Bakkt launch.
At the time of writing bitcoin is trading at $4500 according to coinmarketcap and the overall market cap is $147 billion. A thing that would push the price further down in the short term would be if BAKKT postpones the launch, but price going under $3000 seems unlikely.
Disclaimer: This is not an investment advice, don’t invest what you can’t afford to lose. Don’t use margin. Don’t borrow money to buy crypto.
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