Crypto Market: “Great Random” or “Hopeium”?The crypto market is declining moderately, although among the top 100 coins we are witnessing the growth of some altcoins.
This is due to the ongoing events in the networks of these projects. For example, ZCash grew after Blossom hard fork, but by Thursday evening it lost all the growth. Other coins, including Tezos, WAVES, Cosmos, showed growth, but often rapidly lose it.
Market participants are confused about future prospects, as it becomes clear that at this stage, the triggers that previously caused the market volatility have ceased to work. Yes, however strange it may seem, but the rapid dynamics of the crypto market, even if it is declining, is still welcomed by investors more than a prolonged state of stagnation. Everybody understands that after a sharp decline, the market will also start to buy back quickly, and it is always a good opportunity to earn for those who do not adhere to long-term strategies.
As for long-term investors, everything is much more complicated here. It is very difficult to let in the thought that perhaps right now we are witnessing the process of devaluation of Bitcoin. In addition, the first cryptocurrency has been buried so many times, and it still feels relatively good in the long run. Due to the lack of the ability of regulators to limit the development of Bitcoin, they issue licenses for institutional investors to do so.
Or maybe the opposite will happen? No one has abolished the “random” regime, and that if, a decade after the Great Recession, central banks and governments are unable to keep the economy in good health condition, which will trigger a chaotic sale in traditional markets. Where to invest if the banks are making negative returns, the “printing press” is working under the instructions “from above”, devaluing paper currencies, stock indices are bursting with cheap money created over the years of ultra-soft monetary policy?
Gold? Perhaps part of the money will actually attract the precious metal. But the truth is that investors are looking for new, more intelligent methods of investment, albeit in the computer code. There is a possibility that some of the released funds will be directed to cryptocurrencies, but perhaps not to the ones that have already reached their peaks and collapsed to their current lows, but to the new coins, which are now worthless as Bitcoin in the past. Often, large investors invest in many projects at once, without understanding which one will meet their expectations.
A successful case is being actively replicated, attracting new investors to the project and provoking the price growth, and this is the point when a big capital takes profit, causing a collapse. As everywhere else, there is no “white and black” colors in the market but only shades. Most likely, the scenarios of supporters, opponents or even regulators won’t meet their expectations. This will be the scenario of the “Great Random”, while at the moment the market participants are more inclined to adhere to “Hopeium”.