A research by Statis Group projects that Crypto markets will have a 50% increase in trading activity by 2019. In other words, Crypto enthusiasts are projected to increase. Additionally, current investors are expected to increase their trading activities.
The Bearish Trends Of 2018 Will Not Have A Negative Impact
The From the beginning of 2018, Crypto market capitalization has shed of a colossal sum of $500 million to stand at the current figure of slightly above $200 billion. In the period, Crypto prices have taken a deep hit particularly the leading Digital Coins such as Bitcoin, Ethereum, Litecoin, Dash, Monera, Bitcoin Cash, XRP, etc. For instance, XRP price has lost over 70% of its value from a peak of $3.75 to the current $0.56. On the other hand, Bitcoin has experienced the same fate and the value has dropped from highs of $20,000 to the current $6,506. Other Cryptos have also lost massively to aggregate the total market loss.
Despite the discouraging performance and the market jitters, many investors are treating the volatilities as the normal cycle of markets where bullish and bearish trends alternate from time to time due to external or internal factors. Therefore, there is still optimism of better returns in the Crypto community.
Another factor that is eclipsing market jitters is the fast-paced innovations in Cryptos and Blockchain technology. Every day, the DLT is customized for solutions that are vital to day-by-day activities. Further, regulatory authorities and self-regulating organizations (SROs) are directing all their efforts towards streamlining Cryptos to protect investors from possible volatilities.
There Are Over-Powering Concerns
In the same study by Statis Group, the report indicates that the main challenges facing the Crypto market are how to securely store cryptocurrencies and how to trade. The challenges are the main concerns that are not only facing individual investors but also institutions that are willing to invest in Cryptos in 401(k) schemes or Individual Retirement Account Plans (IRA). The challenges are compounded by the emerging issues of regulatory compliance and security that have been slowing the growth rate of Crypto trading.
Innovation Is Overcoming The Challenges
However, all the challenges are being addressed through the continuous development of Crypto exchanges with cutting-edge Blockchain features. Moreover, there self-regulatory authorities (SROs) and government regulatory institutions such as France’s AMF and US’s SEC are crafting policies that are designed to enhance security and increase the ease of trading. For instance, the US SEC is set to approve Bitcoin ETF.
The report went further to state that the Cryptos are maturing and stabilizing as knowledge fundamentals continue to be passed from one party to another. Also, the decision by governments to invest in technologies of monitoring Crypto market will bring confidence and usher Digital Assets to a new era of development.
The study also shows that 10% of the U.S. equity trading volume will be in Cryptocurrencies. Also, for the first time in history, Digital Assets trading volume will surpass the U.S. corporate debt trading volume by end of 2018. The growth will be sustained until 2028.