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Chinese Analysts Say Bitcoin Bear Market Likely to Continue In 2019

TweetShare Chinese analysts expect the current bitcoin bear market to continue in 2019, contradicting the bullish projections of crypto bulls like Mike Novogratz, who predicts that the bitcoin price will hit record highs this year. “In 2018, bitcoin became an investment black hole,” according to the state-run Beijing News. “Entering 2019, bitcoin prices are still showing signs…

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Chinese analysts be expecting the present bitcoin undergo marketplace to proceed in 2019, contradicting the bullish projections of crypto bulls like Mike Novogratz, who predicts that the bitcoin worth will hit record highs this 12 months.

“In 2018, bitcoin became an investment black hole,” in line with the state-run Beijing News. “Entering 2019, bitcoin costs are nonetheless appearing indicators of decline, and there is not any obtrusive rebound.

For bitcoin’s pattern within the new 12 months, pessimism is extra dominant.

Xiao Lei, a foreign money coverage analyst, attributed the Crypto Winter to the meteoric worth spikes that digital currencies skilled in 2017, announcing such explosive enlargement was once unsustainable. As a end result, the marketplace reacted via tumbling.

“The price of bitcoin rose more than 20 times in 2017. That increase is definitely unsustainable,” Lei says.

Analyst: Crypto Is a Zero-Sum Game

Crypto analyst Huang Liang (pseudonym) calls the digital foreign money marketplace a “zero-sum game”. Image from Shutterstock.

Crypto analyst Huang Liang (pseudonym) calls the digital foreign money marketplace a “zero-sum game”:

The cryptocurrency marketplace is lately a transaction-driven zero-sum recreation. The cash you earn can handiest come from the cash in somebody else’s pocket.

You wish to have extra [noobs] input the marketplace and purchase it at a better worth. The surge in 2017 was once because of the truth that many rookies entered the marketplace as a result of they had been wooed via the brand new ideas of “blockchain,” “smart contract,” and “ICO,” — pushing costs up.

Many green rookies are sufferers of rip-off artists within the crypto ecosystem. Victims gasoline the present marketplace cave in, in line with Liang.

Sun Hang, a senior analyst on the TokenClub Institute has a in a similar way bearish outlook. Hang does now not consider that the crypto marketplace will rebound anytime quickly as a result of provide and insist are off-balance.

The Chinese govt has been vocally anti-crypto and has again and again cracked down on bitcoin mining and close down crypto exchanges, as CCN reported. However, the bans were unsuccessful, as bitcoin miners nonetheless perform within the nation.

Crypto’s Future Is the ‘Tokenization of Everything’

Despite the dire outlook of a few Chinese analysts, American crypto buyers like Circle CEO Jeremy Allaire insist that the bitcoin worth will rocket over the following 3 years.

Irrespective of its day-to-day worth fluctuations, Allaire underscored that bitcoin has a “very significant role” to play as a scarce, non-sovereign retailer of worth.

According to Allaire, some cryptocurrencies will ultimately die off because of aggressive forces. The marketplace isn’t a zero-sum recreation. The luck of 1 virtual foreign money doesn’t imply the demise of all others.

“I do not think it’s going to be a winner-take-all [scenario],” Allaire said. “We have a phrase: the Tokenization of Everything. We think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”

Featured symbol from Shutterstock.

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