Will Institutional Money Start The Next Bull Run?
The year 2018 is coming to an end. As a crypto investor, you might have learned a lot in the year 2018 as it has been a bear market. The start of the year was amazing, and bitcoin prices were hovering around the $14K in January 2018. However, from there, it has been a bearish market. Right now, the price of bitcoin is hovering around $4K.
2019 may be a different year altogether. As an investor, you might be thinking when will the next bull market will start? If you do, then we have some good news for you. There are two new players in the market, Bakkt, and Fidelity. These players hold the key when it comes to bringing institutional money to the market. So, how will they impact the market? Let’s explore by learning about them below.
The New York Stock Exchange is managing Bakkt. They’re also working with active partners such as Microsoft and Starbucks to ensure that digital currencies reach the masses. Moreover, Bakkt can play a major role in bringing institutional money to the market. This will open a lot of opportunities for traders and end-users who want to get started with trading.
Bakkt’s key features include being efficient, seamless and secure. All of this will instill trust in the market and enable digital currencies to reach the public. Bakkt is also trying to bring ETFs(exchange-traded fund).
Fidelity: An Introduction
Fidelity is yet another cryptocurrency storage and trading platform. It’s managed by Fidelity Investments who currently are managing a whopping $7.2 trillion in client assets. They’ll manage the investment of digital currencies and ensure that the end user doesn’t have to go through unwanted complexities. Their involvement in the market will also mean that end-users can manage and store cryptocurrency without any difficulty. Unlike Bakkt, Fidelity can only be used by institutions. This means that retail investors cannot use the platform.
Current market challenges
The bear market is a accumulation of many problems and challenges. To get a clear picture, let’s list the challenges that the current market is going through.
- Volatility: The number one market challenge is the volatility. The prices are volatile which makes it harder for small or even big investors to stay in the market.
- Lack of Liquidity: Even though the price of bitcoin reached new levels, there are still concerns regarding the liquidity of most of the digital currencies out there. It will be tough for the masses to use digital currencies if there is lack of liquidity.
- Unregulated: The market is completely unregulated which makes it not an ideal place for an investor.
- Mass adoption: Cryptocurrency is still new which means that it lacks mass adoption. Combine it with a lack of awareness, and it becomes a big challenge for the market to grow and sustain.
Can Fidelity and Bakkt Start A Crypto Bullish Market in 2019?
With all the information in hand, will Bakkt and Fidelity change the market course? We think it can, and below are the list of reasons why we think the market will change in 2019.
Improved liquidity: With Bakkt and Fidelity, capital inflow will increase drastically. As we mentioned earlier, Fidelity managed $7.2 trillion in customer asset. Both Bakkt and Fidelity will bring institutional investors into the crypto market solving the liquidity problem.
Security and stability: The platforms created by Fidelity and Bakkt is trying to ensure that the market stays stable. They are also offering security by trying to get bitcoin ETFs. This will ensure trust and make it more secure for traders to do trading. Fidelity is not new to securing networks, and their expertise can further improve the market’s security and help clients to manage their assets with full confidence.
Mass adoption: Last, but not least, both the platforms will bring mass adoption. This will enable the market to come out of the depression. Bakkt aims to do so by partnering with Starbucks and Microsoft. Microsoft will handle their backend systems whereas Starbucks will enable their customers to pay using digital currencies.
I think that both Bakkt and Fidelity will play a crucial role in market success. They will bring market stability, improve liquidity, start mass adoption and much more. So, what do you think about them? Will they play a major role in 2019 and start a bull market? Comment below and let me know.