Tuesday, November 20th, 2018
Yesterday, we saw another fall in the cryptocurrency market. Bitcoin has dropped another 10%, which puts its value under the 5 000 US mark. Some analysts, reported by CNBC, have attributed this fall to stop orders and technical levels that are finally coming through after last Monday's fall. If that is the case, as sad as this may be, at least it means there is nothing more severe going on here behind the scenes. Another factor, some are looking at, is this might be the fallout of the Bitcoin Cash hard fork finally hitting the cryptomarket.
The CNBC article quoted, eToro analyst, Mati Greenspan saying
"The next logical level of support is at $5,000, but if that doesn't hold, the next logical support level isn't until $3,500,"
"With all the falling prices lately, this fits the definition of a buyers market."
If you would like to view the entire CNBC article you can find it here. https://www.cnbc.com/2018/11/19/bitcoin-skids-to-a-13-month-low-nearing-5000.html
In the down times often it is hard to think positively, but sometimes it just takes some searching to find another perspective. On November 15th, only a few short days ago, KPGM, one of the “Big-Four” auditors based in the Netherlands, released a new report regarding cryptocurrency. KPGM reported that they believe for cryptocurrency to reach its real potential it needed institutional investors. The entire point of how the investors should enter the world of cryptocurrency can be found in the full report, which you can find here: https://assets.kpmg.com/content/dam/kpmg/us/pdf/2018/11/institutionalization-cryptoassets.pdf
In the report, they referenced Coinbase's belief, and plan, on how to get cryptocurrency to the next level.
“Coinbase believes crypto will mature in three stages: investment/speculation (which the industry is currently in), institutionalization, and utility. The institutionalization and utility phases may happen concurrently. However, to move from investment/speculation to utility, crypto needs to become more liquid, trusted, and accessible.?”
They went on to say how to get cryptocurrency to become more trusted and accessible saying:
“In many ways, leading crypto companies should aspire to meet the standards and leading practices established by traditional financial services companies. We believe this will help promote trust and accelerate the adoption of crypto by investors and institutional clients. “
The report even went on to say that Coinbase is taking many steps to make their exchange more accessible to what institutional investors need. Coinbase has been seriously improving their exchange and what they are offering in the last couple months to try and entice institutional investors to sign up. There is a saying in English speaking countries “This too shall pass.” Even though people are often applying that saying to struggles within their life, this too applies to the slump in cryptocurrency. Cryptocurrency may be down, however, if we take this time to grow and become more appealing to institutional investors, this slump too shall pass.
-Written by James Hepburn