Interest in Bitcoin has declined significantly in the mainstream consciousness since the beginning of 2018, with google searches showing a 60% fall, whilst Nvidia are reporting a decline in sales of their cryptocurrency-dedicated graphics cards from $289M to $18M between Q1 and Q2 2018.
The total cryptocurrency market capitalization has fallen nearly 75% from over $800 billion in January to just over $200 billion now.
But, there are good reasons to think that the market may be about to turn the corner soon.
In an interview with Bloomberg, Bobby Cho, the Global Head of Trading at Cumberland stated that the entrance of institutional money into the market has coincided with a noticeable decline in volatility and a price stabilization, paving the way for a further influx of institutional money that traditionally prefers low volatility markets.
Trading venues such as Circle and Coinbase Custody have been onboarding institutional investors with custodian agreements in excess of $5 million and according to the CEO of Circle, Jeremy Allaire, the OTC market has experienced a triple-digit growth in trades over $100k, resulting in more market maturity and increased professionalism.
In the meantime, we have the NYSE’s Bakkt platform coming in November, Nasdaq is making preparations to launch its own cryptocurrency trading desk, scheduled for Q2 2019, Citigroup is in the early stages of a plan to launch a Bitcoin Digital Assets Receipt (DAR), Fidelity, the fund management firm with $2.5 trillion under management is planning to offer its investors exposure to Bitcoin with the introduction of cryptocurrency products by the end of Q4 2018, according to CEO Abigail Johnson.
In time, this should see the market turn the corner and initiate a movement in price to the upside.
Also, on the CFTC website there is a Federal court ruling that virtual currencies are commodities, although it may not necessarily be a final and binding ruling that applies to all virtual currencies.