According to the supporter of bitcoin and the Manager of Susquehanna Bart Smith, despite the recent fall, the main cryptocurrency will soon resume growth. Speaking on CNBC, the expert said that the launch of two crypto platforms, Bakkt and Fidelity, will help restore high bitcoin liquidity and support its potential in the market.
The fall of bitcoin below the shock mark of 5 thousand dollars is not proof of the upcoming collapse of the crypto market.
“The desire to have an independent currency has always existed. Remember, bitcoin appeared in the midst of the financial crisis of 2008, so let’s see what will happen next year,” Smith said.
A blow to the market has caused the recent hardwork of Bitcoin Cash. The software update and the” hash war ” between Bitcoin SV and Bitcoin ABC, which became fierce after the fork, provoked panic among investors who began to massively sell their stocks in cryptocurrency.
The problem of insufficient capital in the cryptocurrency industry, which the expert noted during the live broadcast, will be solved by the regular launch of trading platforms Fidelity and Bakkt, which is planned for the near future. These platforms are aimed at large investors, with the help of which large capitals will come to the market, which will help to restore the liquidity of bitcoin and altcoins.
“It is important to take into account that it is quite difficult to attract new capital. If you represent a global company, it is still difficult for you to buy bitcoin on the terms that would suit you. A wealthy person will not want to take pictures of their documents, as well as send money to a dubious, in his opinion, a site on the Internet. He will prefer to invest with Fidelity or Bank of America. All this leads us to the second problem, namely the lack of liquidity. We have already seen a stable bitcoin exchange rate in the summer of 2018. But when the hard fork took place and the scandal associated with it, many players decided to get rid of bitcoin. Thus, the market simply did not have enough money to cover these sales. I hope that through the actions of regulators, as well as the launch of Bakkt and Fidelity, the market will have sufficient capital to cover sales,” Bart Smith said during the live broadcast.
Also, a clear policy from the regulators of the USA, Japan and South Korea will positively affect the dynamics of bitcoin. Now the authorities of the above countries are strengthening the Supervisory policy towards the participants of the crypto market, but as soon as it takes legal shape, investors will be able to enter into exchanges and conclude transactions within the framework of the current legislation.
The decline in the cost of bitcoin has led to a reduction in the use of bitcoin when paying for goods and services. According to Chainalysis, during the first nine months of 2018, the volume of commercial use of the main cryptocurrency fell by about 80%. If in December last year, at the peak of bitcoin growth, the amount of transactions with this asset exceeded 427 million dollars, in September it fell to 96 million dollars.
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