Experts discuss significant factors

In its history, Bitcoin has seen 4 major corrections. During each one, Bitcoin’s value declined by around 80 percent. This year’s correction is 69 percent.

Earlier, in August 2010, August 2011, January 2014, Bitcoin suffered 70 to 80 percent losses.

According to Cointelegraph, in spite of the fall in price, most BTC investors remained loyal to Bitcoin and kept their investments.

“Neither long-term investors nor new speculators have changed their positions much this summer. This suggests that the market will make a major move, for better or worse, only in response to a fundamental change.”

In the past two months, Bitcoin has shown stability in the $6,300 to $6,800 range, demonstrating that the market has matured this year, while other crypto-currencies showed high volatility.

Cointelegraph explains: “The increase in the stability of Bitcoin has allowed the market to become less sensitive to hype and specific events. Major positive developments in the cryptocurrency sector — such as the formation of Bakkt by Microsoft, Starbucks and ICE to improve the accessibility and liquidity of Bitcoin — barely had any impact on the short-term price trend of Bitcoin.”

In 2017, around the time when the crypto market capitalization peaked at $800 billion, it seemed likely that institutional investors would soon enter the market. However, systems that would have guaranteed security required by institutional sphere were not in place.

Kyle Samani, a general partner at Multicoin Capital, says: “ Over the next year, the market will realize that safekeeping is a solved problem. This will release a large capital wave.”

Ari Paul, the co-founder of Block Tower, adds to Samani’s prediction:

“It takes time /…/ to gain trustworthiness. But,  /…/ once a couple big traditional money managers announce that they're including BTC as ‘digital gold’ in their portfolios, others will follow.”

Now, that major banks Citigroup, Goldman Sachs and Morgan Stanley are working on the final touches of setting up services for customers in the crypto market, billionaire investor, Mike Novogratz says that in the upcoming months, institutions will enter the market.

Once Bitcoin surpasses major resistance levels at $8,800 and $10,000, Novogratz stated that in three to six months, institutions will begin allocating their capital into the market. He says. “I think that in three to six months from now, there will be an ‘all clear’ sign for people — big institutions and pension [funds] — to start investing.”

If institutions do enter the crypto market, Novogratz emphasized that the price of Bitcoin will likely achieve a 30 percent increase by the end of 2018.

Ben Horowitz, co-founder of Andreessen Horowitz (A16Z), talks about another important factor. He says that he has not experienced such massive developer activity since the dawn of the internet, and the exponential rise in the developer activity regarding blockchain projects is an outstanding indicator of growth.

Cointelegraph concludes: “Based on the trend of the market since 2011 and its ability to recover to new all-time highs after a major correction, it is highly likely — given the high developer activity around large blockchain networks — that the cryptocurrency market will recover by the end of this year as many experts predict.”

We are entering the last quarter of the year. Goldman Sachs, Citigroup, Morgan Stanley, Bakkt, Nasdaq and other regulated financial institutions have started to find ways to support the crypto market. Let’s see what this quarter has to reveal about the potential of the crypto sphere.



Zsolt Balló