Cryptocurrency News Analysis 2019: Regulations, Institutional Investors Can Make A Boost!

In the course of around 16 months, Bitcoin declined from its peak of 20,000$ per unit as recorded in December 2017, to the value of below 4,000$ by the time 2019 started.

What to Expect from Cryptocurrency Market in 2019

Cryptocurrency market had an amazing run during the course of 2017 when the majority of cryptocurrencies were heading towards all-time highs and market peaks, however, most of the cryptos, including the top cryptocurrency, Bitcoin (BTC) sank in 2018, altogether losing around -90% of the total market value of all cryptocurrencies.

What is installed for the cryptocurrency market in 2019 and which trends will dominate the markets during the year?

SEC and Regulations

Perhaps the biggest turning point for cryptocurrency would be seeing regulations on digital assets finally rolling out, while Securities and Exchange Commission is already working on removing scams, schemes and illegal cryptocurrencies that are proven as securities from the market, that way creating a safer environment for investors.

It is expected to see the digital assets further defined by regulations even outside the US, as it expected to see a positive outcome in case exchanges and crypto startups respond to regulations.

Regulating the market that is still in its infancy stage should also bring institutional investors to the table, as not many institutions are investing in cryptocurrency startup, although the numbers are increasing in favor of the cryptocurrency market.

Institutional Investors

Having institutional investors barging in should be followed by price rises in the market, however, many of them are still overly cautious, so although it is considered that 2019 should bring more big-time investors to the market, it should take more time to see this number significantly increased.

On the other hand, companies such as Coinbase, BlackRock and Goldman Sachs are working on custodial services and similar offers that should create a safer environment and attract institutional investors.

2019 Crypto Predictions

Bitcoin Price Could Crash by 50%

Some analysts also foresee bitcoin testing the last phase of the 15-month bear market and found striking similarities between the price trend of bitcoin in 2015 and 2019.

Crypto To Come Back To Wall Street

The J.P. Morgan analyst behind a report that found major firms are losing interest in cryptocurrencies isn’t ruling out renewed interest. Nikolaos Panigirtzoglou wrote on December 15 that participation by financial institutions in bitcoin trading was fading. He said on CNBC’s “Futures Now ” that the situation is likely temporary.

According to Panigirtzoglou, the firms should renew interest in crypocurrencies as stability grows. “The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future,” he said. “The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”

He expects the firms will begin re-entering the space as the importance of blockchain — the digital system that records cryptocurrency transactions — grows. However, Panigirtzoglou contends it could be years away. “The big obstacle is regulators right now,” Panigirtzoglou said, adding that regulatory oversight is a “bit slow to realize.”

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
Aamir Kapoor is a fintech writer specializing in cryptocurrency and blockchain. He has a background in finance and banking and was a researcher.