In mid-December 2017, bitcoin reached its all-time-high (ATH), which caused many traders, investors to join this potential market. However, the start of 2018, bitcoin price lost more than 60%. Some critics even say that the crypto-honeymoon is over. But anyone familiar with the market knows that when bears come, the bulls will come back to control the market. These are five reasons proven by experts that it isn’t too late to invest in the market.
Bear markets is a golden opportunity to buy assets for a much lower price in preparation for the next price upswing. Bitcoin is for all intents and purposed the quintessential bear market of 2018.
Bitcoin price has dropped by more than 70% on more than one occasion after which the top-ranked crypto always returned to set a new ATH. CEO of Blockchain Developers, Dean Anastos, said that there is a good chance that Bitcoin will experience another price push, which causes the price to reach a new ATH.
Changes In Regulations
2018 started with many negative policies in India, South Korea and concern from the United States. The slow pace of development on regulatory sector has been identified as a reason for the 2018 cryptocurrency bear market. However, since the middle of Q2 2018, there are some noticeable changes in these negative policies. South Korea is considering legitimizing ICOs once more. And Malta is on its way to become a crypto-friendly country. Kevin Barry, Myntum founder and CEO, noted that as SEC confirmed that Bitcoin are not securities, so individuals and business now can purchase cryptocurrencies knowing that they are not purchasing a security.
The Influx Of Institutional Investors
Clearer regulations cause big waves of institutional investors into the cryptocurrency market. Leading exchanges like Coinbase and Gemini have been creating useful products for big money investors. The amount of custodial tools for virtual currency assets increased as well. Patrick Gray, the CEO of HashChain Technology, said:
“Major corporations and financial institutions have been investing heavily in cryptocurrencies. These are significant steps taken by some of the most influential companies in the world and a testament to how favorable general public opinion is getting.”
Risks In Traditional Asset Classes
Besides, the trade war between the U.S. and China has seen no end, and in the EU, Brexit is yet to be finalized. Ray Youssef, the CEO of Paxful believes that it’s time to put downward pressure on gold and traditional safe-haven assets. He thinks “crypto could be the one non-traditional investment that performs well in 2018/2019.”
It’s time for you to consider making your investment portfolio more diversified as the traditional assets are getting riskier to invest in. Cryptocurrencies wil be a potential alternative investment class. It does not link to the mainstream market. Anastos said:
“Cryptocurrency helps to diversify asset classes, which has been influential for countries that have suffered from hyperinflation such as Venezuela and Zimbabwe.”
Many experts believe that the price will go higher as its adoption will continue to increase exponentially. Gray said:
“Cryptocurrency adoption is currently 0.2 percent and has been doubling by 100 percent a year. At this rate, the potential and opportunity over the next ten years are vast. Despite some downturns, that kind of growth potential and growth rate shouldn’t be overlooked.”