Cryptocurrencies and bitcoin seem to be heading for a new historic bull run . The confidence that has taken hold of key industry players is at its peak, bolstered by an environment conducive to systemic change.
Nothing like starting this post with a tweet from the eternal optimist Cameron Winklevoss , to illustrate the confidence that reigns at the moment:
No matter how hard we look, it is difficult to contradict it as recent variables depict the beginnings of a new bull market.
1. Institutions seeking exposure
The Grayscale investment fund once again sets a new all-time high and now manages more than 5.1 billion in digital assets.
This investment fund, specializing in asset management for institutional and high net worth individuals, offers a regulated environment necessary for this type of speculator. The recent upsurge in its performance indicates that more and more seasoned investors are taking the plunge and betting on bitcoin and its cronies.
CEO Barry Silbert was also happy to remind his detractors:
“In 2013, everyone thought we were crazy to start a Bitcoin investment fund. Well… look at us now. ”
2. A regulatory environment that becomes more flexible
It is certainly the most underrated event of the last few days:
The OCC ( Office of the Comptroller of the Currency ), an American state body in charge of regulating the banking system, has simply given the green light to national banks to hold digital assets.
This paradigm shift is so significant that it is not yet fully anticipated by the markets. It opens the door to a whole new class of once-cautious investor. However, this decision will force the art platforms for current exchanges to reinvent themselves if they want to compete with the historical financial institutions.
Are the banks really ready for such a change? It's hard to believe as Bitcoin and cryptocurrencies are like a UFO in the financial asset landscape. This change, taking the form of a real consecration for cryptocurrencies , goes against the principles of decentralization , and has greatly made the most radical react.
Moreover, if the fears of a financialization of the market were already palpable, they risk being accentuated with this historic decision.
3. Stablecoins are still on the rise
The capitalization of Tether , leader of stablecoins , continues to increase. Investors located in countries with significant regulatory uncertainties have made it their preferred means of transaction.
The questioning of the dollar system , its apparent weakness and the chaotic situation in which the United States finds itself propelled raise fears of a loss in value of the queen currency in the medium term. It is therefore likely that to offset this monetary devaluation, the flow of USDT could be reinjected into digital assets with asymmetric potential , with Bitcoin in the lead.
4. Finally credible projects
Let's be clear, the scalability of crypto projects is far from being established. Welcoming a flow of users worthy of the name is not for tomorrow, but the progress made compared to 2017 is daunting.
The Lightning Network and Zap solutions, but also the decentralized finance movement, born thanks to Ethereum (which will deploy the second version of its protocol soon), point to a bright future and an adoption promised for so long.
In summary, all the planets seem aligned and foreshadow a colorful 2020 and 2021 for the cryptocurrency market. While too dashing optimism might sound like disillusionment, the odds of success and adoption have never been more plausible.
Please feel free to subscribe to CryptoPlanet360 on Youtube to get the latest videos about Crypto projects and Blockchain
Subscribe here: https://bit.ly/2NSkrOU