It will not demand a deep understanding or access to the inside data to claim that the crypto market at present is not in good condition. Falling prices is just one indicator which is visible to all. Even the cryptocurrency exchanges are also struggling to keep up with their targets and maintain the trading volume high.
However, the optimism of the crypto investors, traders, exchanges and the businesses dealing in this market, is very hard to overcome. Many experts and observers of the crypto market believe that the market will soon reach where it was in 2017.
When asked if the crypto market is all about the speculations, an analyst named Murad Mahmudov said that if it is about speculation, then nothing could be a perfect use case than the cryptocurrency. He said that good or bad, but speculation and greed to have more is the driving force of this market. People hardly care about the revolutionary changes made by the introduction of the blockchain technology based cryptocurrency; all they want is to use this tool to get rich.
At present, most funds in the market are struggling to raise money. It was easier to raise funds when ICO used to be a hyped term, and there was a craze in the crypto space for ICOs; but now, the hype is reduced or may be lost. When asked to the co-founder of Morgan Creek Digital, he said that it takes institutional investors to raise the sufficient amount; investors who can sign tens of millions of dollars in one check. However, at present, the market does not seem to be providing investors enough motivation either in the form of goodwill or in the form of money.
Institutional investors do not want to risk their assets as there are chances of getting stuck into the scams prevailing in the market. The market is in bear trend at present. If people want to save it from crashing further down, the market must invite experienced, genuine investment advisors who are professional in their approach. These investment professionals will be able to understand the market requirement (time to time) and will consider the expectations of capital allocators too.
He also says that the technology is being looked at as something which is hard to learn. He said this has to be changed; people must know that there are considerable opportunities in the crypto space and the technology is worth learning and it can be learned by an average intelligent person too.
However, these steps will not help a lot. The United Arab Emirates will prove it. The kingdom’s royale Sheikh Saeed bin Ahmed Al Maktoum has decided to join hands with Liechtenstein-based crypto fund manager (INVAO). INVAO would be the kingdom’s international blockchain investments partner.
The royale issued a press release saying that as Dubai is on boarding the ‘Emirates Blockchain Strategy 2021’ and is making efforts to convert the nation into a blockchain investment center, the partner crypto fund management company will cater UAE investors with unique accessibility to crypto as an asset class. The fund managing company would allow investors to buy a token representing an extensive portfolio of cryptocurrencies, and then the investors would be able to involve in crypto portfolio management to yield returns.
The co-founder of Morgan Creek Digital says that though it is a position symbol, it will not be enough. The crypto market needs sustained sources of capital funds worth billions of dollars. The market needs a constant factor on which it can thrive. It is not a fantasy; this requirement can be met; but, it will be taking a lot of time, efforts, assets, money to build a worldwide dominant business company.
Crypto exchanges are suffering due to reducing trading volumes
The bearish market has affected cryptocurrency exchanges across the worldwide crypto space. Exchanges are witnessing reduced trading volumes. In January (last month) the exchange trading volumes hi a new lower level which the market has not seen since 2017. Giant crypto exchanges like Binance has suffered from a cut of 40% in its Bitcoin/USD market.
Another exchange, named OKEx, was showing a positive development for three straight months, but in January the positive growth of the exchange’s business stopped. Even the BTC/USD pairing of Coinbase (exchange) is witnessing the worst month.
The craze and love people have for the cryptomarket are most certainly hard to beat; instead, it is attracting many new people, even in the bearish trend. Cryptolovers are expecting crypto to get its glory back with the excessive gain. Many traders are predicting the same, and social media platforms are full with such predictions. However, speculation might not be a good idea in the present situation.