The cryptocurrency market has against the hopes and wishes of most market-participants been on a bearish run for the most parts of 2018. Bitcoin in particular has dropped steadily from a high of almost $20,000 on December, 2017 to as low as $5,800 about a month ago and it is currently trading at approximately $6,200 as at the time of writing.
The steep drop in coin values have been termed by some as a market correction whiles others are of the belief that the market is being manipulated due to maturing Bitcoin future contracts.
But despite the many postulations trying to explain this year’s bearish market so far, there are some factors that point to an imminent bullish run being in the offing. In the midst of the bearish market, the industry has been solidifying and building up its technology and its fundamentals.
Coinbase for instance has created a new service by the nomenclature of Coinbase custody – this is to help simplify investment for institutional investors and also assist high net worth individuals with the security and storage of their digital assets. This service by Coinbase also has an additional benefit of insurance cover to help mitigate against wallet hack or asset losses. There are also other crypto-based service providers who are unveiling and releasing such and various products to help with crypto-inclusion of the wider market. Such moves will help see the movement of Billons of dollars from Wallstreet and other traditional finance hubs into cryptocurrencies.
The country of Malta has also passed 3 crypto progressive bills aimed at attracting Blockchain and cryptocurrency projects to the state. The bills will help regulate exchanges and also sanitize their crypto market. Due to this, the likes of Binance have started making plans to open an exchange business in the country. Japan, South Korea, Australia, Philippines and a few other nations are planning to adopt Malta’s approach in the next couple of months.
The Chicago Board Options Exchange (CBOE) Global Markets have in the last couple of weeks filed for a new Bitcoin ETF licence application with the U.S Securities and Exchange Commission (SEC) and in addition to this, the SEC has indicated that it will not directly regulate Bitcoin as it does not consider it a security.
There are a plethora of exciting projects going on the crypto/Blockchain space that are likely to attract new and major funds into the Blockchain economy, and the Blockchain technology has in the last couple of months been significantly improved to be more secure, private and faster. For instance, the Lightning network technology is beginning to gain wider acclaim and adoption within the ecosystem – this will ensure faster and cheaper transactions and will ultimately help to significantly increase the number of transactions possible on the Blockchain per second.