Five reasons why Bitcoin (BTC) will not see new peaks in 2018 – Crypto Influencer

No further stellar growth for Bitcoin this year, according to an analysis of the well-known encryptor investor Tuur Demeester.

  articleStartImage

Many members of the crypto community believe that Bitcoin (BTC) has already found the fund and is now set to rise again; however, the economist and independent investor Tuur Demeester argues that for the rest of the current year we may see Bitcoin trading sideways or with a downward trend.

Demeester added that the amazing Bitcoin rally to $ 20,000 of the encrypted world witnessed in 2017 actually started in August 2015, from under $ 200, so the market needs time to cool off and absorb this 30-month historical move .

While maintaining a bullish position on the long-term prospects of Bitcoin, Demeester considers 2018 as the year asking for great care and caution

"I think the chances for this year are high to remember as a year of shakeout: a market of lemons in altcoin, the regulators that recover and the growing infrastructural suffering, "he wrote.

The respected economist and crypt-investor provides five key reasons for this.

  1. Miners are to blame. Growing up with bitcoin mining data in falling prices makes the process too expensive. Those who failed to upgrade their equipment had to face a profound decline in profitability and were forced to get rid of their coins in exchange for profit margins and falling prices.

"With profit margins under pressure, it is not unlikely that the miners are and will remain responsible for a significant amount of sales on the market," writes the expert.

  1. Trade volumes are well below the levels seen last winter and spring, which add to the potential of Bitcoin.
  2. Retail interest is fading. Demeester refers to the results of the Gallup survey conducted last quarter and shows that less than 0.5% of US investors were considering the purchase of Bitcoin in the near future. In addition, data on search trends and Google merchants are not supportive.
  3. Institutional investors involved in cryptocurrency are engaged in speculative trading, which means they will be happy to take both short and long positions

"Institutions that have long been known as mutual funds and pension funds, they are not ready to invest because they are not yet comfortable with available custody solutions, "adds Demeester.

  1. No Bitcoin ETF until now. Demeester believes that the first Bitcoin ETF will not be approved this year, which could upset those who are waiting for this move next month. But when that happens, the market could become ballistic, as it will make the asset much more accessible to retail investors. Remember that after the launch of the first gold ETF, the price of gold rose by 350%, and hopes that something similar could happen to the bitcoin.
Source link