On Wednesday, November 28, Bitcoin price and the overall crypto market bounced back showing the much-needed recovery. Earlier on Sunday, Bitcoin nose dived below $4000 and further slipped to $3600 levels. At the same time, the overall cryptocurrency market lost over $20 billion in just a few hours. It was all bloodshed in the market as the entire altcoin space faltered along with Bitcoin.
Bitcoin Recovers on Nasdaq News
For nearly three days Bitcoin was trading at $3600-$3700 levels until it hit a 15% recovery on Wednesday. On Wednesday, Bitcoin jumped back over $4300 levels majorly recovering its lost ground. The reason behind Bitcoin‘s recovery was the news of Nasdaq launching its Bitcoin futures contracts by Q1 2019. Citing internal sources, Bloomberg broke this story saying that Nasdaq is currently seeking regulatory approval from CFTC for its futures contracts.
The overall crypto market also recovered adding $20 billion to the market valuation. If you carefully observe the charts for Bitcoin and the crypto market on CoinMarketCap, both of them have huge similarity and patterns. It shows that Bitcoin is currently holding the pulse of the crypto market. So far, Bitcoin and the crypto market seem to be consolidating. The Bitcoin price movemnet today remains between $4150-$4350 i.e. $200 or nearly 5% at the current levels. At the press time Bitcoin was trading at $4342 with a market cap of just over $75 billion.
Similarly, the overall cryptocurrency market valuation is consolidating around $140 billion.
Gloomy Economic Condition Can Benefit Bitcoin
A recent report from Forbes highlight why Bitcoin can prove to be valauble in this gloomy economic condition.
“Bitcoin is a rare, unlevered asset in a levered world. Global debt has reached $250 trillion ($70 trillion higher than in 2008); the U.S. runs a trillion-dollar deficit, pension funds are underfunded amidst retiring populations, and student debt has snowballed to $1.5+ trillion in the U.S. (with 9/10 borrowers struggling to make payments). All of this puts pressure on central banks to print excessively into the foreseeable future, diluting the value of fiat currency. Smart money (and increasingly, just more money), will flock to unlevered assets that have limited supply – gold, bitcoin, or other alternative assets that aren’t part of the mainstream investment world. Traditional assets such as equities, government / corporate bonds and real estate are all highly levered,” report Forbes.
Furthermore, the Forbes report shows the blockchain-powered FinTech will benefit in the long term, due to blockchain’s conceptual premise of social scalability.
Traditional Market Experts Show Confidence in Bitcoin
Bitcoin is receiving a huge support from traditional market experts as global economic situation seems worrysome. At the same time, financial heavyweights like Nasdaq, ICE and Fidelity are making important announcements. This helps to restore the confidence of the Bitcoin investors. In a word with Finance Magnates, CEO of decentralized stock exchange DSTOQ, Craig Mc Gregor, said:
“Despite the obvious recent changeability of the market, the underlying value of crypto remains blockchain technology and its capacity to solve real-world problems. This fact is acknowledged in the commitment to bitcoin futures from major traditional players such as Nasdaq, Cboe, and CME.”
Mc. Gregor also said that giant like Nasdaq won’t waste its resources if it was not confident of Bitcoin’s come back. However, no one can accurately predict when the market will recover. CEO and Co-Founder of digital asset class portfolio management firm INVAO, Frank Wagner said that the latest Nasdaq report shows traditional financial players showing interest in the asset class.
“Traditional investors, both institutional and retail, want trusted, guided routes into the crypto market and futures provide an approachable introduction, allowing them to bet on future prices without having to actually buy the asset. I foresee sustained interest building in this area in the months ahead,” Wagner said.
We just hope that there is no more price downfall for Bitcoin and the crypto market. Hopefully we can bid adieu to 2018 on a good note.