Bitcoin is above $8000, ETFs could be just around the corner, and twitter cryptosphere is reaching new levels of confidence, hilarity and optimism.
Clearly, BTC has its swagger back. Does this mean we’ve finally reached the light at the tunnel? What does this mean for altcoins like Baanx? Let’s explore market conditions and upcoming factors to help you make sense of it all, and see how you can position yourself for success during this autumn crypto season.
What’s Happening to the Crypto Market?
Let’s be honest here: the cryptocurrency market experienced an absolutely insane bull run from November through January last year. So it was not surprising that we would endure a necessary correction that was as painful as bull market was joyus.
There are some who claim that the major bull market was in part linked the “halvening’ that occured last summer, when the block reward for bitcoin miners was reduced by half, a normal process that occurs on a predictable schedule as the Bitcoin network continues to grow. While there is not an immediate effect on the years when this happens, prices often do go up later in the year. The next halving will occur in 2020, and some anticipate that this could result in another significant price surge in BTC, a rising crypto tide that would lift presumably lift all other altcoin boats as well.
While this gives reason for optimism in the medium-term, what can we expect in 2018 and 2019? Well, market cycles give us some indicators of how things might unfold.
There is a fairly reliable pattern in terms of how Bitcoin (and by extension, the larger cryptocurrency market) ebbs and flows. The signs appear to indicate that we are re-entering the “media attention” stage now — a good sign. While this is useful as a broad, general view of how markets have behaved over the years, there are a number of new factors that we need to take into consideration when predicting how BTC and altcoins (including Baanx) will perform.
BTC is Pumping, and alts are not — YET
Looking at Bitcoin’s market dominance right now, there have been many prematurely announcing that the era of the altcoin is coming to an end. While alts are certainly taking a hit right now, we need to keep in mind this has happened before; last year the “blue chip” projects like Bitcoin and Ethereum surged first, and then the altcoins (many with vastly higher ROIs) followed soon after. The long bear market has spooked a lot of people, so cautious investors are putting their money the higher market cap coins temporarily. But this also represents the maximum opportunity for altcoin investors, especially promising projects in the presale phase like Baanx.
Big Money is Paying Attention
A year ago, major institutional investors laughed off cryptocurrency. They’re not laughing anymore.
The news that asset management colossus BlackRock had set up set up a cryptocurrencies working group was enough to spur talks of a new bull run. Just recently billionaire hedge fund manager and consistent crypto proponent Mike Novogratz has gone on the record saying there is “a herd of institutional investors” eager to invest in cryptocurrency, and is putting his money where his mouth is, with 10% of his own net worth reportedly in crypto.
The biggest X-factor here is the upcoming Bitcoin ETF announcement. To give you some perspective on what this could mean, here’s what happened with gold when the Securities Exchange Commission (SEC) in the United States approved gold ETFs:
If it is approved, it is almost certain that the billions of dollars will come surging into the market and drive up the BTC price in a short amount of time- and when buyers feel confident about BTC, they start to feel confident about altcoins as well, and you know what will happen next.
If the decision is further delayed, it’s likely that the price will not spike as much, at least night right away. But the trend is clear: big money wants in on the crypto game, and they’re looking for solid projects with proven teams behind them to invest in. When it inevitably happens one way or the other, the cryptocurrency market will likely reach heights never before seen.
How Baanx protects you from market fluccuations
Baanx is one of the few projects out there that was actually designed with the volatility of cryptocurrency markets in mind. No one likes the idea that their gains might vanish as soon as they arrive. That’s why in addition to our industry leading security practices, we built a price lock feature into the Baanx ecosystem that protects you from sudden shifts in price, with fees payable in BXX tokens. It’s all part our guiding philosophy of reducing the risk involved with crypto investing, and making it as safe and profitable as we can for our users.
