What awaits the cryptocurrency market in 2019: expert forecasts

What awaits the cryptocurrency market in 2019: expert forecasts

What Awaits Ethereum in 2019 Expected Bitcoin Price Growth In 2019

After last year’s hype, 2018 brought the crypto industry back from carefree oblivion to the real world. This process was harsh and led to a market collapse, loss of funds and investor interest, and the reorganization of many projects. At the same time, product development intensified, the blockchain received support from governments, and many incompetent participants left the market. However, what awaits cryptocurrency market in 2019, how will the bitcoin rate change and which coins are the most promising? Leading Russian experts told about this to BitCryptoNews.

The fall in stock markets encourages investors to enter the crypto market

Alexander Brazhnikov, Vice President for the Promotion of Security Technologies of the Russian Association of Cryptocurrencies and Blockchain, draws attention to global factors that influenced cryptocurrency rates. He notes the fall of classic financial markets at the end of 2018, which demonstrate the negative dynamics inherent in crisis sentiments, and the growth of the so-called «Fear Index» – VIX by 23%, which speaks of the concerns of the participants about the reliability of investments in classic assets.

Also fall happens in the oil market – from September prices for the BRENT brand lost more than 42%. Against this background, two trends are observed: the natural growth of gold and the recovery of the cryptocurrency market, which began in mid-December..

Despite the fact that the launch of BAKKT, which will allow institutional investors to invest in cryptocurrency without fear for the safety and legal transparency of deposits, may once again be postponed, it cannot be denied that already now large investors who have not considered for themselves previously, crypto assets as an object for investment, there is a reason for investment.

Collapse in traditional markets forces investors to fix profits and look for new investment opportunities, and the crypto market, which has significantly dropped in price in 2018, seems to be a relevant platform for this.

The fall in stock and commodity markets will have a positive impact on the cryptocurrency, which will not be seen as an equivalent investment tool, but as a market for opportunities, albeit one associated with high risk. Therefore, the issue of regulating the cryptoindustry, which in the outgoing year is being worked out in different countries at the level of their governments, is currently of interest not only to participants in the crypto market, but also to institutional investors, the main factor for which is the security of their investments..

According to Alexander Brazhnikov, from 2019 one can expect an increase in the prices of cryptoassets not only due to the completion of the cycle of decline and internal factors, but also due to the arrival of classical investors on the market..

Forecast for the near future of the bitcoin rate was given company analysts «Mine», which is part of RACIB. According to their estimates, the further exchange rate scenario is quite transparent. Experts note that at present prices have formed a local bottom, and by how the benchmark will behave in the first 10-15 days of January 2019, it will be possible to say unequivocally – whether the bottom has been reached or not. In the event that Bitcoin does not gain a foothold above $ 3600 by the end of the year – there is a high probability of renewal of minimums with reaching the level of $ 2900 and subsequent growth. However, if BTC demonstrates growth in the remaining days of the outgoing year, an update of the lows, at least in the first quarter, should not be expected..

Long-term success is important, not short-term fluctuations

Danil Yakovlev, Trade Infrastructure Development Manager at Zichain, believes that over the past 3 months the cryptoindustry has not radically transformed, but the number of negative factors has increased: the alarming situation with the stablecoin Tether, the delayed launch of the Bakkt platform and the postponement of the SEC’s deadline for the decision to launch an ETF on Bitcoin. In this context, the pre-New Year rally does not seem entirely justified..

According to the expert, there is no need to expect a serious breakthrough in the near future — upside potential is capped at $ 5000. But the effect of the recession can be much stronger, it is quite possible to observe $ 3000 and even $ 2000.

Nevertheless, it makes little sense to pay attention to short-term forecasts if we are talking about the situation on the horizon of 1-3 years. Digital assets and blockchain technologies have come to stay — and if in 2018 the states did not form a unified approach to the regulation of cryptocurrencies, and most of the industry revolved around trading in various coins and tokens, then in 2019 everything could change.

The market will sooner or later reach its maturity, and the industry will continue its stable and progressive development. With long-term investing, the current Bitcoin price levels can be perceived as one of the most suitable for entry, because the cryptocurrency bubble has almost completely blown away, and the potential of the technology remains huge..

The most promising next year the expert considers several virtual currencies:

  • First of all, bitcoin, which the world of cryptocurrencies cannot do without — it is used both as an entry / exit point, as a measure of value, and as a base currency for trading.
  • Also, Ripple can be noted as one of the first successful applications of blockchain technology in the industry for which cryptocurrencies were originally conceived. — Money transfers.
  • The more risky part of the portfolio can be used to buy tokens from companies that already have a finished product and a customer base. — it is the leader among crypto exchanges Binance (BNB) and the pioneer of the Nexo security tokens (NEXO).

Upcoming changes will drive growth

Crypto-A CEO Alena Narinyani says that in fact, despite the massive decadent sentiment regarding the prospects for the cryptocurrency market, there are a number of factors that will provoke its growth and development in 2019:

  • First of all, approval of the first bitcoin ETF is possible in February, which will positively affect its value..
  • The popularity of decentralized exchanges is also expected to grow, which will now become liquid and provide their users with the ability to manage private wallet keys..
  • The willingness of banks and retailers to accept cryptocurrencies as a financial instrument and the revival of anonymous coins will have a positive impact on the development of the market..

A new round of market development should be expected after some virtual currencies are considered securities, which will make them available to retailers and create a rich selection of investment instruments for everyone. This can cause a real gold rush. It is assumed that STO will eventually completely replace ICO.

All these factors indicate that next year cryptocurrency trading will remain profitable even if their value continues to decline, which will somewhat calm the market and allow a number of companies to increase their capital..

Investing in bitcoin and ethereum, ripple, monero and bitcoin cash will not lose its relevance. We should also expect the emergence and rapid development of a number of new virtual currencies. To minimize risks it makes sense to distribute investments among several coins.

Everything will be fine in the long run

Alexander Lozben, financial technology expert, director and co-founder of Cryptocode, Cryptomat, Interhash, Minerboard, in long-term planning, he identifies several points that will affect the development of the crypto market:

What awaits the cryptocurrency market in 2019: expert forecasts
  • Overregulation of the banking system and increasing complexity in international settlements, despite globalization and the development of international trade.
  • The threat of a financial crisis in the United States, the European Union and Russia. Many will want to find a foothold and, perhaps, it will be a crypto asset. In principle, now with the fall of the Russian ruble, we already see that this hypothesis is partially correct, and interest in cryptocurrency is growing.
  • Release of own virtual currencies by large companies. This movement is led by Telegrem, but there are rumors that both Google and Facebook are working in this direction. Naturally, the appearance of coins from these corporations can greatly change the value of many cryptocurrencies, however, the total capitalization will definitely grow..
  • The threat of war in the Eurasian region. We see that the hostilities in Ukraine were strongly popularized virtual currency and the Ukrainian community is one of the most active in the world. Naturally, this can await Russia as well, while maintaining the current vector in international politics..

Overall, it is pretty obvious that cryptocurrencies are oversold and now is a good time to buy..

The expert expects a gradual fall in bitcoin with small bounces, but there are no significant prerequisites for short-term strong jumps. However, he is confident that the BTC rate will still break capitalization records, and the next wave will be stronger than the previous one. In his opinion, in the long term, everything will be fine, and we will see a rate of more than $ 100 thousand..

He considers Bitcoin and EOS as the main favorites, believing that one should be afraid, not that tomorrow BTC will cost $ 1000, but that it will grow to $ 50 thousand, and investors didn’t buy.

What awaits the cryptocurrency market in 2019: expert forecasts

About, why the shake-up of 2018 has gone to the benefit of the crypto market, you can find out from our analytical material.

text: Ivan Malichenko, photo: Shutterstock, Unsplash, mithra, satoshi-shop