Even though the cryptocurrency market went on a major slide back in 2018, while losing a great part of the total market value in the course of only a single month back in November, when average losses per cryptocurrency went from -50% to -60% during this period.
In oppose to the year of 2018, 2017 is considered as a year when the crypto market finally showed great potential with booming prices and prominent partnerships between different sectors and industries and crypto and blockchain startups.
Still, institutional investors are cautious and regulations are still waiting to be completely defined to suit the idea of utilizing cryptocurrency as mainstream assets, which is why there might be a dose of uncertainty regarding investing in crypto.
Despite negative factors, potential that some cryptos are showing may be a brief insight into the profitability of cryptocurrency assets in the long run.
Institutional Investors Are Becoming More Involved In Cryptocurrency
Report: Institutional Investors the Largest Buyers of Crypto Transactions Over $100K
Institutional investors have replaced high net-worth individuals as the biggest buyers of cryptocurrency transactions worth over $100,000, Bloomberg reported October 1.
After months of speculation, institutional investors have finally stepped into the cryptocurrency market by becoming the biggest buyers through over-the-counter (OTC) transactions. According to a report by Bloomberg, these investors have bought over $100,000 cryptocurrencies via private sales.
According to Bloomberg, traditional investors and buyers such as hedge funds have become more involved into the $220 billion cryptocurrency market through private transactions. Bloomberg also notes that miners — the biggest sellers on the market — have begun scheduling regular coin sales instead of holding or offloading them during market rallies.
Bobby Cho, global head of trading at Cumberland, a division of crypto company DRW Holdings LLC, said that the cryptocurrency market is now learning from its mistakes. Back when cryptocurrencies were breaking records, miners as well as sellers were holding on to their coins for making more profit. But when the market was suffering losses, these people were selling them at the recovery points. Now, these miners are selling cryptocurrencies in regular sales. “The Wild West days of crypto are really turning the corner,” explained Cho.
Crypto and financial research companies, Digital Assets Research and TABB Group, discovered that OTC transactions ranging from $250 million to $30 billion took place every day in April 2018. This figure is higher than the $15 billion traded in crypto exchanges per day.
Although, the OTC market has suffered losses due to dwindling crypto prices, its position is far better than crypto exchanges. Cho said that institutional investors were hesitating due to the volatile nature of the crypto market. “Over the last four to six months, the market has been trading in a very tight range, and that’s seems to be corresponding with traditional financial institutions becoming more comfortable diving into the space,” concluded Cho.
Tom Flake, founder of crypto mining solution provider Bcause LLC, added that institutional investors are only liquidating cryptocurrencies through OTC. Where large transactions can easily influence the crypto market, private sales allow investors to fix the prices before completing the purchase.
These companies are not the only ones rapidly launching products for institutional investors. In July 2018, Coinbase launched a custodial service “Coinbase Custody” for institutional investors. Later in August, Bloomberg reported that Goldman Sachs was also eyeing the possibility of opening the first custody for crypto funds and institutional investors.
Sam Doctor, Quant Strategist at Fundstrat Global Advisers, said that OTC transactions are preferable because institutional investors tend to buy a large amount of cryptocurrency and exchanges fail to meet these requirements. He added that the market is currently imbalanced owing to the increasing interest from institutional investors. Brokerage firms are trying to bridge the gap by offering their services. Report by Bloomberg
Will Bitcoin Price Go Up? How High Can Bitcoin Go in 2019 2020 2025?
Indeed, 2018 has been an eventful year for cryptocurrencies, especially Bitcoin. The top-ranked cryptocurrency has declined gradually throughout 2018 dipping almost 70% of its mid-December 2017 high of $19,500. In June 2018, Bitcoin experienced a tumultuous time again, declining and rising severally. It even set a new 2018 record low by dipping below $6000 two times. Nevertheless, despite these setbacks, it seems there is much hope on the horizon for Bitcoin investors and enthusiasts.
Crypto Market Today
WLPR Chart Depicts that BTC is Oversold
In line with the Williams Percentage R (WLPR) Indicator, BTC is projected to experience an exponential price reversal. The WLPR Indicator helps discern whether an asset is oversold or overbought. Currently, some analysts strongly believe the WLPR for BTC is depicting a looming reversal of the downtrend, which characterized BTC prices in early and mid-2018.
The WLPR Indicator presently shows BTC at -80 markers clearly signifying a supersaturation of the BTC sales market. Between -80 to-100 is the phase where experts are confident an asset is being oversold. This phase is also the best to venture into the market in preparation for the likely exponential rise.
When is this Exponential Rise Expected to Happen?
The AMSYS Group analyst openly expressed that he had “no idea” when the BTC price could shoot up but stressed that the rise will take place due to the store of value of BTC.
More investments are expected to be pumped into BTC and probably within the next three to five years, BTC may hit $100,000.
Oliver Von Landsberg-Sadie, the founder and CEO of BitcoinBro stated that BTC is basically facing “growing pains” as the marketplace evolves.
Top Cryptocurrency Investments for 2019: In Which Crypto to Invest in 2019?
IOTA (MIOTA) might have lost its well-guarded spot on the list of top ten cryptocurrencies by market capitalization, but MIOTA is one of assets in the market of digital currencies that carries a lot of potential thanks to the involvement with the rising sector of Artificial Intelligence and the Internet of Things, alongside working with Volkswagen, Bosch, BMW and other big names from automotive industry and tech sector.
Bitcoin (BTC) is still the top cryptocurrency with a market cap of 70,8 billion dollars, having recovered over 6 billion dollars since the beginning of 2019, which indicates that BTC is on the slow but steady rise in 2019 with going above the value of 4,000$ before the beginning of Q2.
EOS (EOS) is still the most used platform for Dapps, holding the first place in the number of users working on different types of decentralized applications, which is how this asset may become a valuable addition to your portfolio.
Last, but not the least, Ethereum (ETH) teams are working on advanced version of their platform that should switch from Proof of Work to a more energy efficient Proof of Stake, allowing easy scaling and up to 1 million transactions, which should ultimately raise the price of ETH in the market.
Cryptocurrency Investments 2019: Is Investing in Bitcoin (BTC) Still Profitable in 2019
Bitcoin (BTC) famously saw its peak price back at the end of 2017 when the world’s first cryptocurrency saw an amazing value of 20,000 dollars per one unit at the time, while the rest of the market followed the top crypto.
However, BTC alongside its digital peers took a downward path, soon enough losing over -90% of its value over the course of a single year, while November dips of 2018 took the best of the crypto market, making investors more cautious about investing in cryptocurrency.
Investment magnums such as the world’s richest man, Warren Buffett, still advises against investing in BTC considering that the value of Bitcoin strictly depends on how much money is the next man ready to pay for it, however, BTC is anything but dead although far from 20k per one BTC unit.
Reasons to Consider Investing in Bitcoin (BTC) in 2019
What some investors fail to realize when avoiding Bitcoin is the fact that the number of issued BTC units is limited in a way gold reserves are limited. Still, gold is considered to be one of the most valuable and stable fiat investments, and for a good reason.
Whenever new gold reserves are added to the existing by excavation and mining, the price of the gold may be set to rise because the fact remains that with each mined gold nugget, there is less gold to be mined in the future, thus limiting the supply of gold – this is not the case with money as governments may decide to print more, which eventually leads to deficit and inflation.
Once all BTC is mined, the price of Bitcoin should have nowhere to go but up, having its value raised in accordance with the demand and the number of circulating units against supply.
Bitcoin also represents a digital asset that can be spent or exchanged back to a fiat value such as the US dollar or euro, alongside allowing transacting across Bitcoin platform with no intermediaries and with utmost financial freedom, which is where its importance lies in the first place.
Moreover, with the second quarter of 2019, BTC already went past the value of 4,000$ still showing progress in oppose to the crisis of 2018.
Bitcoin Perma-Bull Tom Lee Believes Bitcoin Price Should Be $10,000-$20,000
Bitcoin perma-bull Tom Lee of Fundstrat tried to buttress his recent projection that the bitcoin price is due for a major rally soon.
On March 17, Lee tweeted that the “tailwinds” that had dragged bitcoin down during the current Crypto Winter are easing.
Specifically, Lee claims that “macro factors such as a rally in risk assets plus the US dollar no longer surging are tailwinds for BTC.”
LEE: EMERGING MARKETS DRAGGED BITCOIN DOWN
Lee then claimed that a plunge in the emerging markets had “pulled down” bitcoin during the past few months. A correlation between bitcoin’s performance and that of the emerging markets has not been established.
LEE: ‘MACRO TAILWIND’ SUGGESTS BITCOIN PRICE SPIKE
Lee also noted that the recent rallies in the S&P 500 and small-cap stocks are greater than two standard deviations.
He then suggested that this means the bitcoin price would rise to $10,000 to $20,000 if BTC were to “catch up” to equities.
MONEY MANAGER: NO CORRELATION BETWEEN BITCOIN PRICE AND EQUITY MARKETS
Meanwhile, many financial experts say there is no correlation between bitcoin’s price movements and the broader stock market.
“I like bitcoin because it’s not correlated with [the stock market],” said Bill Miller, the founder of Miller Value Partners.
“Bitcoin basically has no statistical correlation with stocks or bonds, which makes it an excellent diversifier.”
At this point, few in the crypto industry take bitcoin price predictions from anyone seriously, because even so-called experts have been way off amid the 2018 market crash.
TOM LEE’S SPOTTY TRACK RECORD
As it is, Tom Lee was wrong on his predictions numerous times last year, as CCN chronicled.
In April 2018, Lee insisted that bitcoin would rally big-time right after tax season. At the time, Lee attributed the drop in bitcoin’s price to mass sell-offs caused by investors trying to sell off their cryptocurrency holdings to avoid paying taxes on them.
“Selling pressure for bitcoin should be alleviated after April 15th,” Lee said.
That rally never happened.
On May 31, 2018, Tom Lee’s colleague at Fundstrat — Robert Sluymer, the head of technical strategy — predicted that bitcoin would spike soon because it had finally bottomed, and technical analysis said it would rise.
“We think bitcoin is starting to bottom off some very key support around $7,000,” Sluymer said. “And we think it’s going to start a recovery process here.”
That rebound never happened.
LEE DOUBLED-DOWN ON WRONG PRICE PREDICTION
Then, in November 2018 — at the height of the crypto bear market — Lee doubled-down on his exuberant $15,000 year-end bitcoin price target. At the time, Lee called the Crypto Winter an “awkward transition” that would pass very soon.
As we all know, that comeback also never happened.
Analyst: Bitcoin Will Break Higher in Next Move Based on 12 Month Trends
Price predictions for Bitcoin and cryptocurrency markets have been coming thick and fast recently as the bottom appears to be extending and the bears running out of steam. Short term price action will help day traders take quick profits but most people eyeing the industry are in it for the long term. Analysts have been taking a look at the past 12 months for patterns in order to predict the next big movement and some agree that it is more likely to be one to the upside.
Resistance is Futile
Bitcoin has currently returned to its almost four month long resistance level at $4,000. It has not managed to make a sustained break above this price zone since late November when it fell through it in one almighty dump. BTC has only made it to $4,100 three times in four months and has fallen back pretty quickly. The good news is that there has been no major dump down below $3,000 as many had predicted.
That is not to say that this still will not happen yet, but one analyst believes the next move will be to the upside based on long short ratio analysis;
Bitcoin to Hit $5,000 by May 2019, Analysts Predict,
Despite Trading Volumes Faked by Exchanges
Is $5,000 the next aim?
On his Twitter account, a technical analyst going by the name filbfilb predicts a 20-50% rally for Bitcoin, based on the 12-month trend that, as per him, has been now clearly forming on charts. That, of course, will happen if the trend does not reverse all of a sudden.
$BTC long short ratio analysis Ive been looking at today.
There is a well established 12 month trend going on.
If this formula holds it implies that Bitcoin will rally 25-50%.
See chart for details.
This tweet will self destruct in 7 days. 😈 pic.twitter.com/O3nruTSqLt
— fil₿fil₿ (@filbfilb) March 18, 2019
Crypto Market Prediction 2019:
Cryptocurrency predictions for 2019: Institutional money will be the catalyst
We see lots of signals that 2019 will be THE year in which institutional money will finally enter the cryptocurrency market. This is one of the cryptocurrency predictions for 2019 that will be a game changer for the crypto market, without any doubt.
Many months ago we predicted this was about to happen, and we wrote it to our premium crypto subscribers. We are now seeing true supporting infrastructure being developed. Not only will we see Cryptocurrencies On The Nasdaq In 2019, which is an existing and huge trading platform, there are even brand new initiatives coming online.
To illustrate our point this week Fortune revelead something very important. Bakkt, a cryptocurrency investment platform for institutional money which will launch in November after SEC approval clearly sees a “war for institutional money waiting to investing in cryptocurrencies.” These are big statements, and they provide much more color and detail. Read the following 3 quotes from the article.
White says that the recent market trends give the false impression that investor interest in cryptocurrencies is waning, when in fact institutions are hungrier than ever. Since last December, Bitcoin’s price has dropped from $19,000 to $6,200, and the total market value of all digital currencies has shrunk by 70% to roughly $200 billion. “Far too often the public looks at price and market size to determine the progress in digital currencies,” says White.
“Cryptocurrency markets go their own way, we see bull and bear markets,” he says. “But what matters is that the number of daily transactions for all cryptocurrencies is up year over year. And we’re also seeing the introduction of new protocols from open source software developers that make cryptocurrencies far easier to use.”
For White, it was clear that Wall Street was ready to package digital assets for the masses––especially since cryptocurrencies strongly appealed to millennials. “In 2017, I saw a big shift,” he says. “The interest in Bitcoin and other currencies started changing from retail to the institutional side. But the level of infrastructure of the existing trading sites often didn’t meet their expectations. That’s why they’re waiting on the sidelines.” The big banks, says White, needed exchanges that provided the safety equivalent to what they enjoyed in trading equities, bonds or gold.
InvestingHaven’s research team wrote a detailed alert to its premium crypto subscribers with many more cases, as well as actionable tips on how to get the maximum out of this new trend.
In sum, it is stating the obvious that institutional money will be the catalyst for a resumption of cryptos grand bull market!
Cryptocurrency predictions for 2019: Bitcoin’s upside capped
We continue to feel strong about Bitcoin being the leading indicator for cryptocurrencies. It should be used to determine the trend: up, down, neutral. This is one of the more actionable cryptocurrency predictions for 2019.
However, Bitcoin is not likely the cryptocurrency that will deliver 10-fold returns similar to the previous 7 years.
The underlying reason is that Bitcoin futures will cap the upside potential because, for the first time since Bitcoin’s inception, there is two-sided trading in the Bitcoin market.
That’s why we said in our Bitcoin forecast that we believe that it is very realistic to expect a Bitcoin price of $25,000 as an upside target, assuming the crypto crash is over. Previous all-time highs will be taken out, but we believe Bitcoin will trade within its ‘bullish band’, not higher.
Cryptocurrency predictions for 2019: XRP becomes the new Bitcoin
As per our article published on Medium ‘Why Bitcoin futures will fuel Ripple’s XRP token‘ we detailed why we believe that Ripple is the new Bitcoin. It certainly qualifies as one of our top cryptocurrency predictions for 2019 and even beyond!
Here is the key point: If you were an institution with millions of investment dollars, as per the first of our cryptocurrency predictions outlined above, which cryptocurrencies would you choose? Obviously you would apply the ‘low risk high reward’ principle, right?
Out of the 10 cryptocurrencies with the largest market cap we concluded the following:
For institutional investors the highest level of confidence will probably be for Ripple and its XRP token, followed by Bitcoin, Ethereum and Stellar Lumens.
If, and that’s a big IF, all assumptions we made in our Ripple forecast for 2019 materialize (institutional money flowing primarily to Ripple’s XRP token, Ripple’s tech solutions converging and using XRP, Ripple’s continued growth without chasing revenue to reach network effects) we see Ripple hitting the higher side of this channel twice in the next few years.
As a base case forecast we see one touch to the upper side of Ripple’s long term rising channel with a price forecast of $20. So we are confident that our Ripple price forecast of $20 for 2019 will be hit, and consider this the base case scenario.
Cryptocurrency predictions for 2019: only added value cryptos will do well
If there is one thing that the cryptocurrency crash in 2018 succeeded in doing very well is that it cleaned up the sector. In plain simple terms: create a catharsis. It certainly will benefit the really added value crypto projects in 2019.
The recent sell off in crypto prices resulted in many crypto projects going bust. Many have revealed their real face: scams.
As said many times 90% of cryptocurrencies will die. It seems that we are already at 50% right now: out of the 2000 cryptocurrencies almost 1000 are found to be dead and/or scam. You can find the full list here on https://deadcoins.com/. Obviously none of InvestingHaven’s top 10 cryptocurrencies appears on this list.
The cryptocurrencies that really deliver value are here to stay. They will continue to grow, and deliver more value.
We strongly believe that only the cryptocurrencies that deliver real added value will do very well starting in 2019, and do extremely well in the 2020-2022 period. Yes we are talking 100-baggers similar to last December.
It may be hard to believe but this is one of the cryptocurrency predictions that we are most confident about.
Cryptocurrency predictions for 2019: Blockchain implementations accelerate
It appears lately that blockchain spending by companies is going slower than expected. That’s why blockchain stocks are not doing very well.
However, that’s about to change in 2019. PricewaterhouseCoopers (PwC) works with many of the largest businesses in the world. It recently reported that many of its customers are spending BIG money on blockchain initiatives, and that blockchain spending should only keep growing.
According to PwC, the demand for services related to blockchain advisory is as high as $1.7 billion just this year!
This is a quote from PWC research as summarized (source):
On an individual basis, most firms have spent less $500,000 on blockchain. However, a good 11% of the survey’s respondents have spent more than $10 million.
Why is blockchain a budget item that isn’t going away anytime soon? That’s because this technology “reduces errors and streamlines operations because everyone is looking at the same numbers,” said Richard Johnson of Greenwich Associates.
With that kind of speed and accuracy, more companies are going to be allocating even bigger bucks to blockchain in the next few years. International Data Corporation expects annual blockchain spending to reach almost $12 billion by 2022.