FxPro: Cryptomarket either matured or fell asleep
January 25, 2019 @ 13:52 UTC
It seems that crypto investors took a sedative and stopped dreaming of “flights to the moon” and any kind of obsessive ideas. Fluctuations in the range of 1%-4% in a well-established traditional market are quite healthy dynamics. However, for digital currencies this is real calm.
Quite unexpectedly, a similar situation persisted after the news that Chicago-based CBOE recalled the application to launch Bitcoin-ETF. The market had high hopes for this event, and in this case, it is even difficult to understand what is worse: a possible reject of the SEC or a farewell to the idea of a new instrument. Now the majority of investors are reckoning that this was a strategic step, which was affected by the shutdown of the American government. Probably, therefore, the market again did not respond.
It should be noted that on the background of general calm sometimes we are witnessing local flukes of wind. So, on the background of news about the intention of the Russian project WAVES to allocate start-up grants in the amount of $50 million for developing applications based on the platform, the coin of the same name soared on Wednesday by 20%, trading volumes jumped by 620%.
Of course, this growth was mainly speculative, but such a drive attracts the interest of investors. As a result, many remained in the project, expecting further growth on a more solid fundamental basis.
The “leaks” about imminent launch of the TON project by Pavel Durov “shook up” market background, as there was no news about the project for some time. Crypto community pinned great hopes on the cryptocurrency, however, it seems that nothing can take market out of hibernation.
Some high-ranking World Economic Forum participants in the Davos spoke out sharply negatively against Bitcoin, predicting that its price would literally drop to zero. A little over a year ago, such statements caused a flurry of market emotions. Now these messages are honoured only by a slight smirk.
The summary is simple: over the year the market has matured. The main awareness of investors is that no one knows for sure the future of cryptocurrency, and long-term growth forecasts up to “hundreds of thousands of dollars for a coin” or “zeroing rates” are worthless and have no effect on anything.
Alexander Kuptsikevich, the FxPro analyst