If you’ve been paying attention to the cryptocurrency industry, you’ll know that things have been rough since after the December 2017 spike came to an end. Then, all things crypto were recording outstanding success. However, the spike is over and many of the cryptocurrency-based businesses that were making progress then are now failing. Some have even closed up for good. Not every cryptocurrency business is out of the market. Many cryptocurrency exchanges are still doing relatively well amid a bear market. So, the question is, how have these businesses managed to keep investors calm during this period?
How Have Exchanges Kept Investors Calm Amid The Bear Market?
Since the beginning of this year, Bitcoin (BTC) has fallen by over $54% while the second largest cryptocurrency per market capitalization, ether has fallen by 74%. XRP has fallen by 78%, LTC by 78% and BCH is down by 82%. However, amid this bearish market, New Wave Capital, a crypto startup that was launched in July claims that none of its investors have closed their accounts. Rather, investors have been pouring more money into the platform. The CEO of the platform, Eric Campbell Saks:
“The customers who sign up when the market is bearish are most likely to remain in the long haul. They have what it takes for long-term investing”.
Bitcoin (BTC) Price Today – BTC / USD
Even if this company and other exchanges like this have been able to hold on to customers, the fact of the matter is that this isn’t a good time to invest in cryptocurrencies. The company spreads out funds to over 15 cryptocurrency exchanges for their investors. It rebalances on a yearly basis based on a risk survey algorithm. Even with the bears pressuring the market, Campbell maintains a bullish stance on altcoins and other low cap coins. In his words:
“The altcoins with smaller market capitalization have the greatest potential in my opinion. When the market is bearish, everyone tends to move towards the more resilient cryptocurrencies and shift their focus from altcoins, which in this case is Bitcoin. They believe Bitcoin is the safer option for now. However, when the bulls return to the market, these same people will go back to altcoins”.
The crash in the cryptocurrency industry has been attributed to many things from regulatory pressure to ICO crack down. The security and exchange commission has been rejecting Bitcoin ETFs publicly and privately. Before now, there were many moves in the works to enable Banks use blockchain without Bitcoin. While this may seem like a good idea, it’s difficult to build and it isn’t worth the stress attached. Blockchain is always more efficient when there is a cryptocurrency protocol attached to it.
The cryptocurrency industry is celebrating its 10th anniversary now and Bitcoin is expected to experience a spike next month. While nothing is certain, businesses like New Wave still believe that Bitcoin is the most reliable option in the cryptocurrency space long-term. However, because of the unpredictable nature of the industry, there is no saying what the next few years will bring.