The cryptocurrency market is currently in a state of uncertainty. Someone says that the “cryptocurrency winter” can turn into a “nuclear winter” for the industry. But at the same time, large investors are waiting for the wave of growth to begin. On the one hand, the growth in trading volumes in the over-the-counter market is not sufficient, since transactions are more contractual in their nature. As for the entire market, it is clear that its capitalization is not enough to create an uptrend. This requires a strong fundamental component, which will attract market participants as a sales funnel. On the other hand, the story of Google and Amazon showed how they turned away from advanced solutions, and then returned to the long-term perspective.

The system of world order can be understood – it is inert. It is almost impossible to replace the entire banking system with millions of clerks with bitcoin transactions in one day. We don’t even know how many experts understand the blockchain technology, and how many people from the street can immediately say what it is. It certainly takes time – maybe even more than five years.

However, developed countries continue to examine and study the regulation of the cryptocurrency market. Some US states are considering partial adoption of cryptocurrency laws. Just recently, the state of Wyoming legalized cryptocurrency with real cash collateral. At the same time, it obliged banks to create conditions for the storage of digital coins. Is this a precursor to SEC approval of exchange-traded funds (ETF)? There already is a precedent of digital currencies “in law”. Obviously, the position of the regulator is objective and requires discussions with the public. But in any case, a serious step towards the ETF has already been taken. The question is which of the states will bring the dream of crypto investors to legalize cryptocurrency closer.

What Charlie Lee, the Litecoin creator says:

The creator of “digital silver” expects Bitcoin to rise to $20,000 over the next few years. Such are his statements on social networks when asked by users. We are talking about the long term. However, the creator of the alternative network at the end of 2017 predicted a prolonged decline throughout 2018. Also, according to reports, Charlie Lee reminded his account followers that such a rise and decline was before. It is important to remember about the cyclical nature of the market, that after a long consolidation and corrective movement growth always begins.

The Head of Pantera Capital on the growth of Bitcoin

The creator of Pantera Capital, Dan Morehead, stated that he is not worried about the future of Bitcoin. However, his team notes the growth of fundamental factors. For example, during the “cryptocurrency winters” of 2014 and 2015, there was no such technological development as there is now. In addition, the expert’s fund has been investing in block projects since 2014. As Dan Morehead states, his investments are for ten years perspective.

The head of Pantera Capital also notes that large investors will return to the digital currency industry. However, the expert notes that due to the significant risks of further reduction, large participants will not be buying soon.

Investment Funds

As it is known from analytical materials of research companies, many hedge funds are going through hard times. According to the August reports, some funds suffered losses by 50%. If we consider the continuation of the decline in the second half of last year, then this situation is several times worse. Galaxy Digital LP, the famous Multicoin Capital, and Polychain Capital are among the listed funds. It is known that the assets of these funds have declined significantly due to the bear market.

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