3 Reasons the Crypto Market is poised for a Comeback
The crypto market has seen better days, with Bitcoin and the other major cryptocurrencies plummeting over the last few months and remaining stagnant since February of this year.
But there are some signs that things might be turning around soon—here are three of them.
The infamous crypto winter
As Bitcoin loses market share and regulatory uncertainty remains, signs of progress in the crypto industry are starting to show. Institutional investors are being drawn to stable coins, which provide stability even if Bitcoin's value plummets.
Furthermore, some companies are starting to use blockchain technology without digital currencies as part of their business models.
For example, HPE recently unveiled its Qumulo collaboration software that enables businesses to store and access files at a higher speed and with more data security than conventional storage methods.
How is crypto market today?
The recent months have been less than promising for crypto investors and traders. The market dropped 50% since the beginning of 2018, and no sign of recovery seems to be in sight.
One can't help but wonder if there's any hope left in this market. Luckily, it does seem like things are going to change and we're about to witness some light at the end of this tunnel! Here are three reasons why I believe that:
- 1) New legislation will create more opportunity.
- 2) Mainstream adoption is on its way.
- 3) Protocols are evolving - paving the way for higher scalability and mainstream usage.
Will crypto market crash again?
The crypto market has been in a slump since January, but there are several reasons why it may be on its way to recovery.
The crypto market is currently experiencing complacency. What that means, essentially, is that people are tired of being shaken down and hurt by Bitcoin's volatility.
As it becomes more common and more useful (which it is), people will gradually come back to these assets.
Additionally, blockchain technology won't go anywhere
- so demand will still exist in some form or another. Lastly, once people realize that Bitcoin hasn't died yet, there's going to be renewed interest in it
- because it has repeatedly proven itself as one of the best investments out there!
Is crypto a good investment still?
The crypto market has seen better days. After hitting an all-time high at the end of 2017, when Bitcoin hovered around $20,000 USD, there's been plenty of bad news that's contributed to it's current depressed state.
People who are only just now hearing about Bitcoin see it as an asset that has fallen in value and may never rebound. However, despite those perceptions we still believe the crypto market will be making a comeback soon.
The recent lows can be attributed to traders being caught up in panic selling after reports that Russian-based cryptocurrency exchange platform, KRAKEN had been hacked and service was temporarily shut down.
Bitcoin, the bad boy of cryptocurrencies
Bitcoin, the original cryptocurrency and first of its kind, has seen peaks and valleys of demand. Bitcoin thrives on volatility, which could be a huge factor in its latest comeback.
At certain times during this slump we’ve seen Bitcoin trading at a loss to USD.
This would generally keep people from wanting to buy it. However, there is good news
— Bitcoin seems to be doing better today than it has in the past month or so. Buying low and selling high could make you money if you’re willing to take some risks with your crypto investments.
The Newcomers Are Coming in Fast
The entry of new capital into the cryptocurrency market has injected both confidence and enthusiasm into an industry that has been suffering from waning demand.
Bitcoin bulls and bears have argued over where we are in cycle of cryptocurrencies, with some analysts predicting another bubble, while others seeing this as an opportunity to buy low. There are no clear answers right now.
In any case, though bitcoin may be losing its grip on dominance, there are other currencies emerging to take its place.
Let’s Talk About Ripple (XRP)
Ripple (XRP) is up about 16% in the last 24 hours, and its price has increased by more than $1000 in recent weeks. What’s so special about this currency?
Ripple was designed with banks and global payments providers in mind, as a fast and frictionless way to send money internationally. It typically takes 2-5 seconds to confirm payment while Bitcoin may take 10 minutes or more.
The startup just announced they are adding 12 new partners who will use xRapid, their software which utilizes Ripple's digital asset XRP.
A huge reason why investors are excited about Ripple’s future is because of how big financial institutions are investing.
Altcoins Are Getting Their Act Together
Of course, it's difficult to predict what might happen to cryptocurrency prices, but here are some reasons you might be able to see in a day or two if things start looking up.
The first big factor that points towards the possible bottoming out of Bitcoin and other cryptocurrencies could be that altcoins are bouncing back significantly.
Some of these altcoins are very low in value, meaning they would have to double in price just to get back up to where they were trading before Bitcoin crashed.
As these coins show good signs of stability, it means people might have enough confidence in them again (or at least more than they have with Bitcoin) that it'll jump-start an upward trend.