Under the influence of frantic demand and the syndrome of lost profits, last year one could observe a tenfold increase in prices for some types of cryptocurrencies. People who managed to turn tiny investments into sums for which you can buy a Lamborghini began to be called Lambos. However, since then Bitcoin has lost 85% of its capitalization and now investors are mostly approached with the words “we told you so!”
Regardless of which side you are on, we offer you a forecast for the near future of cryptocurrencies.
1. Once the price of bitcoin falls completely, we can expect a slow recovery
Bitcoin was the biggest investment bubble in history; and history tells us that after an asset bubble collapses, recovery is slow. Expect a crash and subsequent consolidation of the entire market.
2. Crypto ETFs Won't Be Approved in 2019 Due to Unresolved Market Issues
Many see regulatory approval of cryptocurrency ETFs as a potential game-changer because it will provide institutions with access to a regulated product. But since the US Securities and Exchange Commission (SEC) still has serious concerns about manipulation, fraud and custody security, don't expect that to happen anytime soon.
3. Security token exchanges will appear and they will gradually replace traditional crypto exchanges
Security token exchanges are not yet institutional and do not have the necessary liquidity, but we can expect that all this will happen in 2019. Funds will soon begin to be raised through initial security token offerings (STOs), which means new exchanges will displace traditional cryptocurrency exchanges.
4. ICOs will die a slow death
Reportedly, more than half of the ICOs since 2017 have already failed. This market is expected to die soon as demand shifts towards regulated security token offerings (STOs). Demand for ICOs will be limited to a smaller part of the retail market.
5. Institutions are starting to explore asset tokenization
More institutions are expected to begin participating in pilot projects attempting to tokenize everything from bonds to stocks and mutual funds. New large financial institutions will emerge, in addition to Fidelity, NASDAQ and the Swiss Stock Exchange.
6. Digital asset insurance will increase in scope and scale
Insurance coverage for cryptocurrency exchanges and cold storage custodial institutions will increase. Lloyds of London announced their intention in this regard back in August. Many are expected to follow suit in 2019.
7.. Cryptocurrency CFDs will be banned from the retail market
The UK Cryptocurrency Task Force (FCA, BoE and HM Treasury) has already given clear indications that it will ban these products in 2019 or severely restrict their use to protect investors.
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