By ICO Alert
- Cryptocurrencies follow traditional 10-20 year market cycles
- Government banking agencies have begun testing cryptocurrencies
As many traders face tough market conditions in crypto today, they tend to be blinded by red candles and make uninformed decisions. On the backdrop of this bearish consolidation, it is important to note Blockchain technology acceptance is steadily pushing forward.
Why This Matters: As retail investors exit the market, what is left is a mix of semi-professional, professional, and prop shops. These traders stay on to maintain liquidity and act mostly in a market maker role. This environment creates a trading space that is highly discouraging to what little remains for the retail pool.
The market has become so bearish that positive news has little to no effect on price action. A price correction is a necessary “purge” the market needs to clean itself up. Traditional markets generally cycle within a 10–20 year period. Cryptocurrencies are no exception to such cycles. The only difference is the speed and intensity at which it occurs.
What’s Next: The main driving forces for the market at this time are custodial services, regulatory requirements, and liquidity provisions. Without regulation and custodial services, mainstream liquidity will remain dry as large institutions lack the facilities to enter safely. Many government banking agencies have begun testing cryptocurrencies and its related technology.
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