On the one hand, since the cryptocurrency market had entered a bear market, at the same time, some analysts have a conception that in the next year the cryptocurrency market will surpass the value of other assets and therefore will become the good leader.
According to Travis Kling, a self-proclaimed ex-equity portfolio manager, who is currently managing the Ikigai cryptocurrency asset management company, said: "Crypto never existed during a traditional bearish market. The start of QE's largest-ever global monetary experiment The end of QE is causing pain There is a significant possibility that Crypto is the best asset class of 2019. "
The US Federal Reserve opted for the quantitative easing (QE) process ten years ago that helped them reduce interest rates and at the same time allowed them to buy trillions of dollars in government bonds and securities guaranteed by mortgage. This act contributed to the acquisition of bonds that strengthen the liquidity of the market, and therefore economic growth increases accordingly.
The United States was the first country to initiate such a process instead of opting for quantitative narrowing. The Bank of Japan (BOJ) and the European Central Bank (ECB) also slowed bond purchases in 2018.
Furthermore, as stated by Bloomberg Economics, in October 2018 the major central banks of the world began to collectively reduce their bond positions. The increase in interest rates indicates the sign of "normalization" in the prevailing economy market without any interference from the Central Bank. However, this is not the only problem that leads to an increase in a global recession, but there are also other associated factors that hinder the global commodity market.
Kling noted that the current development of the bear market has influenced the performance of cryptocurrency and that this effect can also be seen in the next year. He added that: "It would make perfect sense for me that cryptography would have ended months before the classic asset classes."
This tweet of Kling leads to a difference in opinions from various sources. Few believe that the value of cryptocurrencies will continue to decline and therefore will become the activities with the worst performance while others think that the cryptocurrency will exceed performance in the next year and will therefore become the most efficient resource.
We will have to wait and watch what the markets have in store for us !!