2019: The Year that Brings more Adoption to the Cryptocurrency Industry
2019 will be the year that brings more adoption to the cryptocurrency industry. It will be the year that brings more regulations to the market, as well as the year that banks acknowledge that blockchain technology is the inevitable future of the financial system. The “bear market” should be over towards the end of the first quarter of 2019 and a new rally for major cryptocurrencies will start shortly after. Smaller cryptocurrencies will die or disappear, especially scam tokens and ICOs that provide no value.
Bitcoin was due to start rallying in September 2018, however, the market has been going down lopsidedly despite the positive news and adoption that has been happening in the crypto industry over the past year. Bitcoin has also been defying technical analysis; it stays oversold for days in a row while indicators clearly show the bottom on the charts. On the other hand, any rumors or unsupported news in Twitter can drive the market to crash 15 percent within minutes.
The price of Bitcoin has been manipulated by the unregulated and unmonitored exchanges like Bitmex and Bitfinex. When you trade on these platforms, investors basically gamble against the house, and the golden rule is that the house always wins. The market follows owners of these exchanges and where they want these markets to go – by engaging in wash trades, insider trading, automated bots, outages, and overload issues.
The SEC and the Government need to set clear regulations and monitor unregulated crypto exchanges; and the community should stop using them, or put self-regulatory framework between these exchanges.
Another factor delaying the rally is the CME and CBOE Bitcoin future contracts trading. The crypto community anticipated it would drive the Bitcoin price up, but the opposite happened – those two platforms gave everyone the chance to short Bitcoin without having to own Bitcoins and to get settled in US Dollars for their short positions. The price of Bitcoin dropped just a few days before the expiration of future contracts and increased back to $500 right after.
Additionally, media plays a big role in driving the price of Bitcoin down. CNBC, for instance, was dubbed “the counter trading indicator” for wrongly recommending people on when to buy or sell Bitcoins.
A lot of mining farms are shutting down or temporarily stopping their operations. Hashnest, owned by Bitmain Tech (the biggest Bitcoin miners manufacturer) cannot survive the continuous price drop of the Bitcoin as the electricity and the maintenance rates have grown to 150% for Bitcoin and 100% for Litecoin hash contracts.
What investors should watch for is the upcoming BAKTT exchange in 2019. Some people in the community hope for Bitcoin ETF to be approved but considering recent manipulations in the market it probably won’t happen right now. BAKTT will bring the future of Bitcoin one step forward in getting ETF approved.
BAKTT will be the first regulated futures exchange that requires investors to have Bitcoin to trade and settle in Bitcoin. BAKTT was created by the operator of the New York Stock Exchange (NYSE) bringing all the tools needed to fight manipulations in the market which will give the community a safe haven against unregulated exchanges.
Every investor should be quick to buy Bitcoins and all major crypto currencies now – while the price is low. In a few months, crypto investors will end up with a hefty profit on their initial investment. “Whales” and institutions are currently accumulating all crypto currencies until the next rally.
BelcoBTM serves as a good indicator of Bitcoin demand in the current price range. The sales volume in November spiked at least twice since April while the Bitcoin price fell under $4000 – there is a huge demand right now in the crypto market!