The bullish trend of Bitcoin is eroding, investor sentiment deteriorated

As shown by the most recent report of crypto currency exchange SFOX, a Bitcoin slipped from his bullish ways, underpinned by the long-awaited launch of the futures platform Bakkt and uncertain macroeconomic situation in the world. Summer wild Scripturally ended, and the Bitcoin and other assets susceptible to all the same “macroeconomic effect”, which has left global stock markets out of business.

SFOX data confirm a shift in sentiment around the price of the largest cryptocurrency with a bullish to neutral. Prior to that, one of the main catalysts for the price was a trade war between the US and China.

By the way, the price decline of BTC coincided with a similar decline in gold and S&P 500 index. As expected, the report SFOX, “possibly due to broader macroeconomic uncertainties”. That is, in other words, while the global situation equally affects the traditional financial markets, and CryptoStor.

Dynamics of profitability of the leading crypto-currencies, gold and S&P 500 index from 1 September to 7 October 2019. Source: SFOX

Oil poured into the fire and run Bakkt from the NYSE — the world’s first platform for trading Bitcoin futures with physical delivery of the asset. Although the community has long waited for this event, the launch of the platform was not a success, and the forecasts turned out to be overheated.

Read on: What is a Bitcoin futures? Understand in detail.

Perhaps this fall in connection with the launch of Bakkt also reflects the emotional state of traders. They were expecting a huge influx of institutional capital literally overnight, and this did not happen.

In addition, the report noted that the declining trend of the market is also due to the unwillingness of representatives of the traditional financial sector to join criptural, as previously assumed. Ultimately, this led to even greater uncertainty as to where the market will rush on.

However, despite the current price fluctuations, the role of Bitcoin as an independent “safe Harbor” still persists. At least, so says CEO SFOX Akbar Thobani.

The sensitivity of Bitcoin to changes in the global market is not a surprise and not something new. Almost all asset classes is partly dependent on wider economic factors. In fact, it does not undermine his investment interpretation.

Source: 2Биткоина

Tobani also once again reminded of de facto disastrous start Bakkt. As he said, it indicates that in spite of its absolute usefulness for the formation of the asset class, the markets have simply not yet ready for such complex investment products.

Imagine if Uber tried to start in 1999 karmannyj personal computers (PDA)? At the time a start-up would not have happened because the success of such a product is an important combination and synchronization of multiple levels of technology.

Incidentally, with regard to investment from institucionales. Director of sales and business development in a consulting company Grayscale Raihan Sharif-Askari gave a short interview cryptocurrency resource The Block. That’s what the data from the shared.

You know, I often have to ask, and I see the irony. The rhetoric of media is often based on the fact, “if”, “when” and “if” institutional investors will bring their money to cryptosphere… actually it happened long ago, and institutionally already successfully invested in this sector. Only in the second quarter, we received $ 85 million. This is two times more than in the first quarter. And the share of institutional investors is more than 80 percent of this amount.

While an obvious impact of institucionales not felt, but this does not mean that it will not. We still have to wait. To pass the time will help cryptodata millionaires. And check in Yandex Zen.

Subscribe to our channel in the Telegram. Here soon!

Leave a Reply

Your email address will not be published. Required fields are marked *