Loading...

Crypto Industry on the “Brink of Implosion,” Researchers Say

As measures of crypto volatility reached long-term lows on Tuesday, a new study from UK-based researchers was released suggesting the future is bleak for bitcoin and the broader crypto industry.

#News #BTC #ETH #USD
Email share     Facebook     LinkedIn    Twitter

Cryptocurrencies are barely breathing. Measures of average daily volatility are at their lowest levels in sixteen months and market direction is doing its best impression of a pancake—it’s flat!

Those attempting to watch or trade the price action in bitcoin, ethereum and other cryptos in recent weeks will, by now, be contemplating switching (if they haven’t switched already) to the more interesting pastime of watching mould grow on the bathroom ceiling.

This is, though, the time when crypto traders should be most alert. From a dead or heavily compressed market comes life, and this typically manifests in a violent lurch in one direction, together with a general explosion in volatility. “Stay frosty,” is the message from Corporal Hicks to crypto traders.

Offering a gloomy conclusion on cryptocurrencies and the entire crypto industry is Juniper Research, which released its latest study on Tuesday.

Researchers at Juniper, a digital technology research and consultancy group, argue that bitcoin’s 52 percent decline this year (69 percent for ethereum and 76 percent for ripple) in what should be extremely favourable conditions bodes poorly for the industry’s future.

Consider that cryptocurrencies have had all they need this year to prove themselves as a real alternative to conventional, government-backed currencies, many of which have been weighed down by political concerns, including Brexit, and by trade wars and the stronger dollar, among other causes.

“If bitcoin cannot make gains in such favourable circumstances then it is unlikely to prosper as and when these issues are resolved,” a Juniper researcher said.

Juniper feels that “the industry is on the brink of an implosion” and that “further [price] falls are highly probable.”

 

Further Reading

 

Coronavirus panic drives US dollar strength

Currency rates were extremely volatile last week as the coronavirus situation worsened day by day with various countries implementing ever-tougher measures to stop the spread of the disease.

Last update: 23 Mar, 2020

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!