Bitcoin 2019: How Going for Tech or Profit Could Impact Growth
Though with a positive outlook of an improved crypto market in 2019, Bitcoin climbing to its all time high record could face an uphill struggle. The wrangling between the industry’s make-up of those who are into Bitcoin for profit and those who stand belief in its technology would drag the market slowly. Some would be lost between whether to sell and take profits or hold with the hope it goes even higher for better gains.
The last bull run made it obvious to some that it’s all about money-making. The subsequent prolonged market downtrend in 2018 seemingly made those who ‘hodl’ – due to their belief in the technology – to question their loyalty despite the risen price late last year. Their hope of sticking with its ability to change the world’s financial system was shaken as they watch those aiming for a get-rich-quick opportunity go in and out.
Now, as the price seems to be catching up on a rise, and charts are not as promising as expected, investors would have to debate among themselves whether it is always wise to hold rather than take profits when the opportunity presents itself in 2019.
The prolonged bear market may have been a good correction for the crypto industry after it suffered an embarrassing rise and then fell late last year. It has been attributed to the inability of the industry to sustain the price rise throughout the all time high period – even up till now – due to a lack of many real world project use cases. As a result, many still wriggle in the aftermath effect of the last burn on their investments.
It is not clear if a full bull run would come but some investors are likely sitting on a 25% profit already and are ready to pull the plug once the market trend changes. The recent uptick over the $4000 range has been mostly accompanied by a period of consolidation which is looking bad for the shorters who have been upping their game since November. But it’s not clear how long it would last and what’s to come hence an uncertain market situation.
However, the bearish market has helped forced some good projects out to make progress both towards actual usability. The overall crypto market is seeing new tech and benefits for big money to return. Some useful applications are expected to be rolled out in 2019 to create price driven by usage instead of speculation.
Also, there is room for improvement in using cryptos to pay for goods and services even though it is still not economically-beneficial yet due to lack of infrastructure causing more charges. Lightning Network use is improving and could make the situation better for merchants and customers in 2019.
There could be a change in sentiment and momentum anytime soon especially as institutional investors are scheduled to make their entry into the market. It would afford many investors waiting for some assurances to jump in without much hassles. It is clear that the general knowledge of cryptocurrencies has improved in the past year.
The unfolding situations paint a picture of a clash in views which could lead to a little more investors still leaving the space if the bear market extends for longer in coming months. On the other hand, there is a belief that those left at this point are mainly those who see the market for what it is and consider now as the best entry point because they trust the technology for what it could do. However, it is imperative to note that the market is tilted towards growing slowly in 2019 and followed by consolidation at each stage rather than seeing a huge spike in a short period as it was the case in 2017/18.