The market for cryptocurrency could not grow too long. The capital that came to Bitcoin during its active growth, and not at the beginning, when the cryptocurrency was only strengthened, was unreliable and contained a big risk. Those who jumped into the “last car” turned out to be the greatest evil for the cryptocurrency, which was increased by the “bitcoin-bubble”. As a result of the active reduction of positions, the Cryptocurrency lost these speculators, but now the risk of a recurrence of such a collapse has decreased in the near future.
The development of new markets requires maturity. Bitcoin’s market is too young to talk about it, as a holding and promising investment tool. Until it collapsed, many institutional bodies could not analyze the full cycle of the behavior of the cryptocurrency from takeoff to fall. Now the bankers and financial monopolies have experience, and the market itself has become more mature. This process will be repeated endlessly, but each time because of the experience of participants, its behavior will be more predictable.
A large investor requires a predictable investment. The unpredictability of the behavior of Bitcoin’s course, which we observed until recently, frightened those who expected to make a profit in the long run. Everyone compared the situation that developed with Bitcoin with “tulip mania”. Under such conditions, the risk of investing is many times higher than profit due to the strong volatility, so the crypto-currencies were deprived of the arrival of “big money” in them. Today, judging by the statements of those who support Bitcoin and sees the future in the crypto business, investments in the market will go more active.
Speculations will decrease because of a change in the priority of the price for the quality. A year later, the rise and fall of the Bitcoin course, players can finally evaluate the prospects, guided by the number of companies that use crypto networks in one area or another. This is perhaps the most valuable thing that the market and its potential participants acquired. Now, it is more difficult to organize a strong speculative growth or a fall, since, besides the external background and insider, there will be reports of companies, statistics on the development of projects and the development of applications based on the blockchain. Experts note that this will be the main factor of the asset evaluation, as it should be.
Technical analysis will become clearer. Earlier we already wrote that it was difficult to carry out the forecast of Bitcoin’s course using classical methods of technical analysis. Strong speculation, the lack of a base of formations emerging in this market, and the influence of the crowd’s emotional behavior on market figures, all this greatly hampered the work with price charts.
Now, this process will be more uniform and close to the standard methods of technical analysis. The absence of strong speculation will give an understanding of what kind of figure the market is forming, or what level in the future will become the key to the Bitcoin course.
The fall of Bitcoin’s rate will accelerate the process of legalizing crypto-currency. Many people think that such behavior of Bitcoin as we observe in recent days, and at all will close the way to legalization. Our experts believe that no. The experience that the crypto community received will greatly help in discussing the new rules, and be adopting laws that regulate the work of the market.
Similarly, the authorities of many countries will stop manipulating in their statements such accusations towards Bitcoin as a scam, a “soap bubble”, another pyramid, etc.
Bitcoin has its price and those who put on its development in the future, enough to keep it from disappearing, it remains only to legitimize it and make trade in crypto-currencies understandable for all participants.