FxPro: Crypto 2.0 — what will breathe life into crypto market? – October 30, 2018
October 30, 2018 @ 16:39 UTC
In addition to a critical psychological BTC level around $6K, investors keep in mind another important threshold: a total capitalization at around $200 billion. From mid-August, both figures on charts look like a heartbeat of a recently deceased organism.
First, a consistent and sharp decline of vital activity (correction from the beginning of 2018), then convulsive spikes (rebounds and corrections during 2018), after that a life signal disappeared and a prolonged sideways trend began. There are two possible ways in the future: either the patient will be returned to life using a defibrillator or even current $6,500 per BTC will be remembered with warm nostalgia.
Search queries analysis indicates a drop in the number of the Bitcoin searches to the levels of spring 2017, so now we are situated at the point from which the global crypto-fever had started. The difference is that in April 2017 the BTC cost about $1,500 and daily trading volume fluctuated at around $200 million (now $4.2 billion).
If search engines register a drop in interest and the prices retain their current levels, then how does the number of transactions per day remain stable at around 250k and the trading volume is also firm? Apparently, everyone who wanted to enter crypto market is already “on board” and a current very long stability trend sustains mutual settlements within the network.
Back in spring 2017, it was possible to attract retail investors with the faith in a fundamentally new technology that would change financial world but now something weightier is needed: a really working product or development of a fundamentally new technology. International banking transactions acceleration is perceived by people as something more related to internal banking processes.
In addition, in many cases cryptocurrencies are more centralized than traditional financial system.
Last year the fever began with the opportunity for everyone to earn new digital money (GPU mining) and conduct transactions anonymously bypassing large centralized banks and governments. A new similar idea beyond the background of remittances is able to breathe life into the cryptocurrency sector.