Following months of bearish pressure in 2018, the cryptocurrency industry seems to have started 2019 in grand style. The price of BTC was able to move above $3500 surging all the way up as it got closer to the crucial $4000 mark. Last week, most of the top cryptocurrencies were trading in green against the USD. Even if there is currently a price correction going on, things are looking up.
Cryptocurrency Market Shows Strength In The Start Of 2019
During the first month of the year, there was some volatility in the price of cryptocurrencies. However, the prices were able to gather strength from the major announcements about adoption that have been coming up within the last few weeks. There appears to be a renewed interest in the industry especially with the possibility of a Bitcoin Exchange-Traded Fund being approved. While the SEC has been hesitant about approving the Bitcoin ETF for a while now, they seem to have developed an interest in it with a high possibility of approving it soon.
Bitcoin (BTC) Price Today – BTC / USD
The Bitcoin ETF is another investment vehicle for digital assets that will be available on cryptocurrency exchanges. However, by approving it, the SEC would help build trust in the industry and present a degree of regulatory clarity. This would spark up the interest of many institutional investors in the market.
The price of tokens reflected the positive sentiments of the investors last week. There was also a relatively stable increase in market valuation and this is one of the signs of market maturity. Some experts suggested that the extraordinary spike in cryptocurrency market valuation towards the end of 2017 was based mainly on speculation and FOMO. This is why it was unsustainable and followed by a significant drop in price and market valuation.
How Are Things Different This Year
This year, prices are being driven up by adoption and fundamentals rather than speculation and FOMO. There is an increased focus in the use cases of cryptocurrencies and blockchain technology rather than the price of cryptocurrencies alone. This is giving community members more confidence in the market. There are many small developments that are all contributing to spark up investors interests in the industry. Many of these developments are creating mainstream attraction to blockchain technology and all its use cases.
Another thing that is bringing cryptocurrencies closer to the mainstream is the development of stablecoins. In an unexpected turn of events, research has revealed that institutional investors will turn their attention to stablecoins in the next few years. In fact, these new asset class is predicted to have a more significant impact on the cryptocurrency industry than Bitcoin and other major assets. This is something JPMorgan Chase has decided to capitalize on with the creation of the JPM Coin.
Facebook is also allegedly making plans to create a stablecoin that would be used on WhatsApp. If the rumors are true, rest assured that it is going to mark the most significant step in cryptocurrency adoption that the industry has seen.
It’s true that investors are yet to recover from the extended bearish wave from last year. However, the strong start this year is evidence that things are looking up. Many investors with foresight are already making major moves in the industry. Even if cryptocurrency prices may not experience a sudden spike in the next few months, it is already gaining a lot of mainstream adoption. This is more important than price hikes as it ensures long-term survival.
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