Late 2018 attracted an ominous recession on the stock markets that influenced indices global. Analysts are already talking of a bear market in shares. Added to this are indications that central banks could continue increasing interest rates in 2019.
Regulatory pressures, on both exchanges and tokenization jobs, made the industry more complicated, as trading and fundraising was no longer seen as a free-for-all activity. While the electronic asset markets stay less tightly regulated than legacy fund, you will find indications of tightening coming later on.
Usable technologies is key, according to Marshall Hayner, CEO of Metal:
"I believe tokens that have utility, and are usually thought to be decentralized cryptocurrencies, will live on. But, tokens that existed only for a funding event, and don't have any useful function, will most likely disappear or become collateral tokens trading on platforms that are licensed. The cryptocurrencies that will come out on the top will be the ones having the most usable real-world value."
Others are not as optimistic:
"I really don't think this is the end of a bear trend. Not yet. As a consequence of a steady decline in the crypto markets, most blockchain startups have been cutting down their activity or even leaving the industry entirely. We've noticed that many blockchain developers are searching for jobs today -- that wasn't the event a few months back.
Crypto assets are here to stay, but volatility and confusion may remain for 2019, forecasts Misha Libman, Co-founder of all Snark.art:
"Ultimately we're coping with a brand new technology and new strength that is very speculative, illiquid, and elusive, and drivers because of its growth and drop is anybody's guess and can be credited by the media to whatever out of Federal Reserve's interest rate increases into SEC regulations to advertise fever. But no doubt I feel that blockchain and cryptocurrencies have an area in our future and the roller coaster volatility which we are seeing now is something we are going to need to live with for a little while until we will begin using crypto to purchase chewing gum."
Towards the end of 2018, individual assets were rallying from their lows, demonstrating the markets had the energy to pull off a rally. Bitcoin reached $4,253.34, also readily climbing to a greater price vary in hours on December 24. Nevertheless, the current movement might also be a brief instant that invites caution. Mati Greenspan, Senior Market Analyst at eToro, remarked:
"For people wondering why we are seeing this amazing push against the ground, the only explanation I can give is that this rally is about covering. Especially after the brief squeeze, we watched on Mondayand yesterday's act is merely a continuation of this. Markets are made from individuals and it's likely that the majority of individuals will be looking to lower their vulnerability before the holiday season. Throughout the past few weeks, there are a lot of high leveraged short positions building up and when those market positions are closed, it creates upward pressure on market rates."
The new calendar year, however, may bring extend the market, as more capitulation occasions are not out of the query. The influence of stablecoins is yet to be felt, although Tether (USDT) has revealed its dominance within the market, and still makes up a large proportion of Bitcoin trades.
ICO-funded startups is going to have to show their mettle and show that they aren't a scam by simply demonstrating a route to a sort of workable product or service.
Exchanges, which were subject to an growing number of hacks and attacks in 2018, are fighting to boost security and screen their clients better, including markets seen previously as freely accessible, such as Binance, as well as decentralized trades.
Individual Assets and coins will go through potential milestones. Bitcoin Cash (BCH) is considering restoration and widespread adoption, even whilst Ethereum (ETH) is advised to transform into a proof-of-stake coin using the Casper upgrade.
Institutional investment, in addition to the launching of an ETF, might continue to be delayed, dependent on doubt, at least before the value of electronic assets and real-life use cases prove themselves.
In 2019, the infrastructure for trading protection Teams will continue to develop, showing the real world performance of the type of asset. The following year will reveal if tokenizing securities is a major opportunity, or if the growth would be catastrophic.
2019 is going to be a year when a great deal of improvements in the pipeline will get observable and steer the direction of electronic asset markets and projects. While compared to the hot days of early 2018, the new year might seem like"crypto winter", the building of alternatives won't stop, even though the advancements would arrive with much less hype.