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.

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Responses

      1. Workin2005

        Apparently, I can rate older posts twice? I know I rated this before…but did it again. I’ve been noticing the same with others posts. After about a week or 2, it seems I can rate a post I’ve previously rated a second time. Are you noticing the same thing?

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  1. VG

    I really hope the big boys don’t get involved with crypto. The manipulation will run rampant if they do. The big banks know that the blockchain can put them out of business or at the very least, not be able to cook the books. Will be interesting to see what happens @sandwichbill.

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    1. sandwichbill Post author

      An influx of institutional investment is generally seen as a positive thing for the market, that will stabilize the market and start the next parabolic. Let’s just hope they don’t introduce fractional banking and all sorts of other exotic financial instruments.

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  2. Adil Elias

    Great analysis @sandwichbill.

    Do you think that some cryptocurrencies and blockchain projects paused their marketing effort until there’s some market reversal waiting for the bull run? And also, do you think that Facebook and others banning crypto-ads might’ve affected the public attention in regards to cryptos?

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    1. sandwichbill Post author

      I think it’s safe to say that the Google and Facebook ban on ads has had an effect on Google searches and public awareness of the benefits and technology that cryptocurrency has to offer, as has the bear market. The mainstream fomo has subsided and it’s difficult for projects to cut through the noise (FUD) that the MSM has been spreading.

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