The public is anxious to see the crypto market rise again. It was exciting, enticing, and even addictive. However, despite the long list of innovations, announcements, and milestones achieved, Bitcoin‘s price continues to drop. And the question on most people’s mind is why. There is a long list of reasons for that too. But the short answer is one: money. In order for the Bitcoin market to rise, it needs more money. Ironically, there is plenty of it, but most of it is going to the technology behind it, the blockchain. The rest is being held by large investors who hold massive amounts of Bitcoins and who are waiting for the right market conditions to invest.
Since its discovery, the blockchain stole the spotlight away from Bitcoin. The potential of an immutable code with multi-function capabilities is too good an investment opportunity for anybody to pass. China has been taunting the idea of developing a national blockchain for months. Today it announced the set up of a $1.6 billion blockchain research fund. EToro the world’s leading social trading and investment platform recently secured $162 million for research and development of blockchain technology. And a global conglomerate of venture rounds added $103 million to the tally.
Unfortunately for investors, the massive influx of investment into technology is unrelated to the crypto market price. The rise and fall of crypto prices is dependent on people buying crypto currencies. And the tsunami of negativity surrounding the crypto space has drowned investor’s appetite to put more money in. Also, large holders of Bitcoin are sitting on the sidelines waiting for a change in the market. This is because the trustee of Mt. Gox (Nobuaki Kobayashi) still has 166,344 Bitcoins in his possession. And the sale of these will flood the market and drive prices further down.
Nevertheless, continued interest in crypto currencies prevail despite the volatility or the extended Bear period. There are many signs that confidence in investors will return in near future. And many see regulation as a positive step that will eliminate speculation and stabilize the market. Also, the younger generation is more accepting of new, disruptive technologies. And the Asian market, in particular South Korea, Japan, and China are leading reforms and organizing better exchanges and market adoption. Once individual confidence is restored, as corporate investment has, individual’s investors’ money will re-enter the market and Bitcoin’s price will rise once again.