2019: US-China Trade war may Continue While Bitcoin Leads Crypto Market Maturation
Expect Bitcoin to lead the consolidation and maturation of the cryptocurrency market in 2019 even as the US–China trade war intensifies due to insufficient progress on key issues, a new report says.
Compiled as part of the A.T. Kearney’s 10 predictions with implications for the global business environment in the coming year, the report hinges a prolonged US-China war on the US Democrats’ assumption of the majority role in the US House of Representatives to fortify existing bipartisan disapproval of China’s reported trade practices. Once President Donald Trump’s trade agenda is sustained through the legislative backing, it would trigger China’s retaliation in a way seeking to “dispel growing opposition to its trade practices, and fortify its domestic economy.”
The unraveling situation is likely to correlate with happenings in the crypto space which has had a year of decline – almost 80%. A.T. Kearney attributes the drop in value to being “fueled by security breaches and hacks, spiking fees, and the popping of a highly speculative bubble.” The authors of the report assume that the cryptocurrency market will start its second decade of existence in 2019 with a ‘post-crash consolidation and maturation.’
The report states:
By the end of 2019, Bitcoin will reclaim nearly two-thirds of the crypto market capitalization as altcoins lose their luster because of growing risk aversion among cryptocurrency investors. More broadly, financial regulators will soften their stance toward the sector.
Also, it appears that money is now being pulled from stocks into both gold and Bitcoin which means the top cryptocurrency is gradually adopting a safe haven status in the minds of investors.
About 2019 predictions
Though it is normal for predictions to start trickling in at the end of the year based on perceived outlooks and market trends, institutions like SaxoBank and industry insiders – especially those associated with investment institutions – have been cautious at churning out such information at this year-end. This is due to the inaccuracies that permeated the space for the most part of 2018.
— fil₿fil₿ (@filbfilb) December 27, 2018
It leaves individual forecasts especially from influencers to fill up the space left by institutions. One of such is Filb Filb, a crypto analyst that works with charts, who claims that Bitcoin could breach a $332,733 price once the effects of the halving start to hit the supply and demand in crypto markets. The block reward halving is not expected until about 500 days.