Despite the skyrocketing growth that the crypto market experienced in 2017, this year its future doesn’t look so promising as it seemed last year. But is it really so?
Though in December 2017, Bitcoin was traded for over $19,000, now, according to CoinMarketCap, its price is nearly$6,480. Similar changes have happened to other top coins like Ethereum and XRP. But while this year Bitcoin has lost approximately 60% of its value, the losses of Ethereum and Ripple are more serious. They have lost 86% and 92% respectively.
In such market conditions, some industry’s experts continue supporting Bitcoin but have some doubts about the future of altcoins and the ICO market and predict that a great part of institutional investors that are expected to enter the industry will choose Bitcoin for making their investments.
Speaking to journalists, Sonny Singh, the chief commercial officer of BitPay that is U.S.-based bitcoin payment service provider, expressed his view on the potential changes in the cryptocurrency market. According to him, at the current moment, it is not clear whether the market has reached a bottom. He said:
“Right now the market is looking for some defining moment — a catalyst. Right now you’re hearing a lot of rumors. But next year you’ll see the talk of the big entrants become real — Goldman Sachs launching a trading desk, Fidelity does launch a bitcoin product, Square offers bitcoin processing for merchants, BlackRock offers an ETF. When these things start to happen you’ll see some adoption and then the price will bounce up again.”
The Bitcoin and wider crypto market is very vulnerable to external influence. This year, a lot of changes have happened due to uncertainty in regulation. The community is still waiting for the decision of the U.S. regulator about creation of Bitcoin ETFs which would enable traders and investors to buy into digital coins without dealing with specialized exchanges.
Though experts have different thoughts about the advantages and disadvantages of ETFs, it is believed that Bitcoin price will go up in November, when ICE, the parent company of the New York Stock Exchange, will launch its Bitcoin ETF.
Commenting the major cryptocurrency, Bitcoin, Sonny Singh stated:
“When you see the bitcoin price drop, people have stopped trading ICOs as much as they were. The ICO market is in a lot of trouble and will never get back to where they were eight months ago. At BitPay, we’ve never been more bullish [on bitcoin]. Where the issue is, is the altcoins. Those will never come back, the way bitcoin will come back. Bitcoin will re-bound next year.”
“You’re not seeing the likes of BlackRock launching an altcoin product. Bitcoin’s the leader in the space,” added he.
But Singh is not the only person who believes in the power of Bitcoin. John McAfee has reaffirmed his position about Bitcoin. He still believes that it is the number 1 cryptocurrency for processing transactions in the ecosystem.
McAfee predicts that Bitcoin price would be close to a million dollars by the end 2020 and encourages to HODL, explaining that “there is no such thing as a wealthy short-term investor”.