Crypto Markets Enter A New Phase

Satoshi introduced the world to bitcoin for the first time in 2009. More than a decade later, the crypto space has experienced exponential growth in some of the most remarkable ways seen in the history of financial markets.

Enthusiasts wonder when the rallies in the crypto market valuation will continue. However, the news of bitcoin’s decline among institutional investors could have an undeniable impact on buying.

The last few weeks have seen crypto prices fall and that has planted some levels of doubt concerning crypto as an investment option. But on the other hand, long term trends remain supportive, and analysts believe that the current digital currencies era is in its earliest phases.

The market capitalization grew to $128 billion in 2018, from $5.4 billion in just four years. At the moment, there are more than 1500 digital currencies and 40 million active users globally. The growth has attracted interest from retailers, large institutions and governments. Here are a few factors that could propel crypto’s growth forward.

Regulation Reactions

State governments have made efforts to formulate and pass crypto regulation laws. Among them is Georgia, Colorado, and Arizona who have adapted crypto-friendly laws. On the other hand states like New Mexico, California among the other ten individual states have given a warning to residents against investing in crypto.

Legal requirements and taxation have prevented the US regulatory agencies from implementing clear regulatory frameworks at the federal level. However, efforts are being made to create enforceable regulations in these areas.

If the regulations are enforced, then the sector is up for a more significant number of participants. Institutional investors feel safe to operate when the industry is regulated. This could be a bullish outcome for bitcoin and other major cryptocurrencies.

The Acceptance Of Blockchain Technology

Crypto’s underlying blockchain technology is heavily associated with the adoption of cryptocurrencies. Hence, as crypto markets grow, so does the attention to blockchain.

Blockchain, as a decentralized ledger, records every transaction precisely and as it occurs. Information is stored in a database that makes it impossible to alter the record.

As a result of the network’s security, transparency, and traceability, the technology has found use in banks, government departments and insurance companies, among others.

The Illinois blockchain initiative commissioned in 2017 calls for a consortium of county and state agencies to cooperate and explore innovations that arise from the blockchain and distributed ledger technology.

The World Is Shaping Up For Crypto

The continual acceptance of blockchain is a mega boost to the outlook of crypto markets. The world is slowly shaping itself up for cryptocurrencies and crypto-assets.

On the contrary to the belief that regulations suppress the market, they continue to inject confidence and will lead to an accelerated growth rate in the underlying market valuation. Its acceptance as an investment option is taking off.

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