Everywhere we look, crypto prices are falling. In an industry that once seemed unstoppable and hellbent on rapid growth, things have taken a quick – and nasty – turn…
Time to Pull Those Wallets Out
Which is probably why now is the perfect time to buy. It may seem like cryptocurrency has run its course and that its future is in permanent disarray, but there’s always another side to the coin, and those who invest now might experience some serious comfort down the line.
First things first: prices are the lowest they’ve been in nearly two years. Any stockbroker or investment expert will say that it’s important to buy when prices are low. Heavy drops in crypto prices mean assets are now more available.
Second, while prices may have fallen considerably over the last 14 months, developments in the crypto space continue to rapidly occur. Blockchain-based applications and related products continue to make their way into the financial market and beyond, suggesting demand amongst consumers hasn’t diminished. As more and more products enter the market, the bigger the industry could become.
Big Things Happening in Crypto
Eventually, institutional players and similar figures are likely to see that the blockchain and cryptocurrency space isn’t going anywhere. Thus, they’ll feel inclined to get involved, which will give this industry the legitimacy it needs. This legitimacy can only lead to growth, which could pave our way to a market once again dominated by bulls. Granted you bought in when prices were low, you could see your investments spike and your portfolio take on a more appealing status.
Among some of the major developments we’re witnessing in the crypto space is the introduction of Bakkt, a program established by the Intercontinental Exchange (ICE), Starbucks and Microsoft. Bakkt is a platform designed to ease the process of accepting cryptocurrencies as payment for goods and services by retailers.
Are Trust and Demand Growing?
In addition, organizations like Fidelity Investments are establishing their own cryptocurrency custody divisions. Fidelity’s will be known as Fidelity Digital Asset Services, and it is allegedly set for release in March 2019. At 72 years old, Fidelity has primarily kept its hand out of the crypto space until now, offering customers largely traditional trading options such as stocks and bonds. This new branch will provide the firm’s clients with alternative ways of investing in cryptocurrency, suggesting a strong (and growing) interest in digital money amongst everyday traders.
An important factor to remember is Fidelity’s age. The idea that a long-established investment firm of Fidelity’s reputation and prowess could enter crypto is not just a sign of huge demand; it’s likely to start a trend. Fidelity’s involvement in crypto could lead other firms to potentially follow suit to satisfy their customers. As more and more companies take this route, cryptocurrencies will grow stronger, and with that strength may come higher prices.
Prime Events in Early 2019
This February is also set to be a huge month for crypto and could potentially lead to hardcore results for current investors. Per the “January 2019 Crypto Volatility Report” released by institutional broker-dealer SFOX, February 2019 is set to bring several new developments to the arena that could cause prices to explode.
Among those factors are the expirations of futures contracts. CBOE bitcoin futures will expire on February 13, while CME bitcoin futures will have their final trade date on February 22. From there, the process will begin again, but volatility tends to increase when these contracts expire, which means current prices have as much chance of jumping in the coming weeks as they do of falling further.
Another Fork in the Books
In addition, the Ethereum Constantinople hard fork will also occur on February 27. Hard forks can be controversial depending on their circumstances. All one needs to do is look at the recent bitcoin cash fork that occurred in November 2018 to understand, and volatility can often increase following the establishment of a new chain, thereby leaving room for ether prices to move up in early or mid-March.
The biggest item worth noting is that February 27 is when the Securities and Exchange Commission (SEC) is set to finally make its decision regarding a bitcoin exchange-traded fund (ETF) submitted by the joint venture VanEck SolidX. These companies have been working to get a bitcoin ETF approved since March 2017, though most early attempts have proved fruitless.
A Long Journey Concluded?
It wasn’t until summer of last year that the SEC began seeking both public and professional opinion regarding the benefits of a bitcoin ETF. The organization later announced it would make an official decision in August, though the process has been consistently delayed.
Granted the SEC does approve the ETF on schedule, legitimacy for the currency and its industry will be further solidified, and prices are more than likely to explode throughout the crypto space.
The Bloomberg Galaxy Crypto Index also suggests that starting this month, cryptocurrencies could be headed for a major price rally based on the recent closing values of major assets like bitcoin and ether. With all this in mind, now may be the best time to put a little money into crypto and watch it expand into something fantastic.