Cryptocurrency Market Investments: Prospects For 2019
Сryptocurrency market investments include plenty of options: you can buy coins and wait till their price goes up, follow trends and acquire tokens of the best ICO projects, or focus on the crypto infrastructure. Paradoxically, but according to cryptocurrency market research, the industry of crypto businesses keeps developing rapidly despite the recent collapse in the cryptocurrency market. Crypto banks and foundations are being created, new ways of using blockchain are being discovered — and investors are required everywhere.
Some people even joke that cryptocurrencies may disappear but the crypto infrastructure will remain. However, it’s too early to claim that digital currencies have sunk into oblivion. The last three years show that the investment attractiveness of cryptocurrencies is much higher compared to traditional financial instruments.
2018 illustrated how fragile the position of the global banking system is now. Over the past few months, stocks of large companies that used to be traded at the peak fell in price by an average of 35%. In particular, we are talking about Amazon, Apple, Google, Twitter, Netflix and other American companies — the technological giants of the US. This led to the decline of indices on the US stock market:
- Dow Jones sank 29% from early October to late December;
- NASDAQ lost 23%;
- S&P 500 fell by 20%.
Brent oil lost 42% in value over the same period, too. As we can see, investors who had put money in commodities or stocks of market leaders suffered losses in 2018. At the same time, those who had focused on the cryptocurrency market investments, felt much better. We are speaking of individuals and companies that chose promising blockchain-based projects and the best ICO projects for investments.
For example, Tagomi Holdings is a full-fledged trading platform for institutional crypto investors. By mid-December 2018, the startup managed to collect $16 million from well-known venture capital companies. Greg A. Tusar, the former global head of electronic trading at Goldman Sachs, has become the chief technology officer and one of the co-founders of the firm. In his interview with Bloomberg, Tusar said, “It’s an early stage, there’s a lot of opportunities to build great businesses and have impact”.
Plans For 2019: Pending Changes
It is noteworthy that the crypto enthusiast Anthony Pompliano claimed a year ago that the nearest future would be a good time to invest in the crypto infrastructure. As we can see from the cryptocurrency market research, he was right despite the cryptocurrency crash in 2018.
To successfully invest in crypto, you should choose the right way. Even though the market is in downtrend, 2019 is expected to be a breakthrough. Perhaps the crypto market will finally become available to institutional investors. Right now, we are waiting for at least three important events that will set the future direction, maybe for a long-term period.
Launch of the Bakkt platform
Bakkt is a Bitcoin futures trading platform. It has already raised over $180 million but is still waiting for approval for trading activity from the financial regulator CFTC — the Commodity Futures Trading Commission. The platform was expected to get approval and start working on January 24, but a several days delay was recently announced.
Bitcoin ETF Trading
The long-awaited SEC's decision on the VanEck and SolidX application should be announced on February 27, 2019. If the application is approved, large investors will enter the market, and it will definitely affect the price of cryptocurrencies.
Bitcoin Futures Nasdaq
This is the other company that awaits a decision from the CFTC in the first quarter of this year. As we know, Nasdaq is not a pioneer: the CME Group and Cboe Global Markets exchanges launched Bitcoin futures trading at the end of 2017, which pushed prices up. It will be interesting to see what happens to the market this time.
All three decisions, whatever they may be, will affect the market. Experts forecast Bitcoin price increase by an average of 10% once the companies receive regulatory approvals. We can only wait for their decisions and choose where to invest this year, as it would be misleading to disregard such opportunities.