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Smart people invest in cryptocurrencies during this time period

1 Institutional investor's ambition Garry   Tan,   co­founder   and   well­known   investor   at   Initialized   Capital, believes that institutional investors are pouring a lot of money into the world   of   cryptocurrencies,   and   now   may   be   the   best   time   to   get institutional funding. Garry   has   invested   in   cryptocurrency   startups   such   as   Coinbase.   He pointed out that this year's cryptocurrency bear market actually reduced the investment risk of new visitors, especially for institutional investors. The amount of funds injected by these institutions in the cryptocurrency economy is basically the same as the amount of funds they invested in core venture capital investments, indicating a higher return expectation. 2 Encryption funds are not performing well Due to the poor performance of cryptocurrency funds, many high­cost entry   investors   continue   to   lose   money.   In   the   past   few   years,   many investors have deployed a large number of cryptocurrency hedge funds. Last year, the cryptocurrency market was optimistic and the market was expected to be extremely high. As a result, many hedge fund managers overestimated the growth of cryptocurrency portfolios, using investors' multi­million dollar assets for cryptocurrency speculation. In August of this year, Autonomous Next, a cryptocurrency research and financial technology analysis company, released a report showing that in   the   first   half   of   2018,   the   valuation   of   most   cryptocurrency   hedge funds fell by more than 50%. The study also believes that a significant


portion of hedge funds deliberately shorted Ethereum, which is the main catalyst for poor overall market performance. According  to the report, “To use a project on the Ethereum platform, users have to use third­party tokens with the main goal of fundraising to make purchases and payments. This makes the ETH coin less common and weakens its role. The function of the accounting unit or exchange medium. Moreover, the ICO project party must cash out the raised ETH to   maintain   the   team's   operations,   which   imposes   a   constant   selling pressure on Ethereum." The report also mentions that the lack of regulation and the rejection of Bitcoin ETFs are also important factors for investors to continue to sell cryptocurrency assets during this period. 3 Bear market is bottoming out Bitcoin experienced a bull market in 2017­2018. At the end of 2017, the total market value of cryptocurrency was as high as $795 billion, which has now shrunk to $218 billion. In less than a year, the market value has evaporated by 72%. However,   many   industry   experts   believe   that   cryptocurrency   is bottoming   out.  As  the  leader  in  the  cryptocurrency  market,  BTC  price has gained strong support around $6,000. In   early   September,   billionaire   Mike   Novogratz   said,   “$6,000   is   the bottom price of Bitcoin.” ErikVoorhees, founder and CEO of the digital currency trading platform ShapeShift, pointed out that although the bear market is not over yet, investors are coming at this time. It's completely feasible, because Bitcoin is hard to fall below $6,000. In  fact, many  institutional   investors  have  already  opened  positions  at this   bottom,  because   this   is   obviously   much  safer   than  entering   at  a higher price. This also means that most of the funds will not be out of the $6,000 price range, and other mainstream cryptocurrencies will also form their respective bottom prices. For example, Ethereum, the second­ largest market capitalization,  has gained  strong support around  $200. Similarly,   XRP,  BCH,   EOS,   XMR   and  Litecoin  all   rebounded   from   their respective annual lows. Currently, technical indicators show that the overall trend is still empty, and Bitcoin has set the lowest weekly trading volume in the past seven days. However, given the positive developments in the cryptocurrency industry and the stability of bitcoin prices over the past two months, the cryptocurrency market is likely to be bottoming out.


4 Standardization of the encryption market As   most   speculators   exit   the   cryptocurrency   market,   the   remaining market   participants   are   increasingly   aware   of   the   function   of cryptocurrency. As  investors  become  more aware  of potential  scams, new 1CO projects that lack reliable proof of concept are on the verge of death.   As   blockchain   investment   increases,   regulators   also   show greater interest in developing cryptocurrency regulations. In   addition,   the   famous   investment   manager   David   Swensen   also believes  that the current cryptocurrency market is  less  risky and has recently invested in two cryptocurrency funds. For   long­term   investment­oriented   institutional   funds,   the cryptocurrency   winter   is   giving   them   the   opportunity   to   invest  in   the cryptocurrency market at a relatively safe cost. The bear market is not terrible  because it also means low cost. The  most terrible  thing  is  to grab   the   bull   market   tail   and   enter   the   market,   and   then   the   assets plunged 80%. This kind of deep pit is the most difficult to fill.

Smart people invest in cryptocurrencies during this time period  

Smart people invest in cryptocurrencies during this time period

Smart people invest in cryptocurrencies during this time period  

Smart people invest in cryptocurrencies during this time period

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