Will Crypto prices bounce back?

For the past few weeks Crypto Currencies (CC’s) have been in a downturn, and the causes of the fall are myriad, and out of synch with the overall investment market. While downturns are not immediately profitable for investors, they are an indication that CC’s are every bit as susceptible to geopolitical market forces as any other investment.  June was a particularly brutal month, with the CC market cap dropping about 41% – – a very strong reaction to world events, a stronger reaction than we saw in the mainstream equity markets.  So is this the time to make an investment in CC’s , buying on the dip here?  The bottom may be in if geo political events do not escalate or shift into even less stable territory.  Markets do not like uncertainty or instability. As with Wall Street, a bounce back for CC’s will depend on there being more well defined, well reasoned, and less contentious political moves within nations with medium to large size economies. Currently, Wall Street has shrugged off most of the trade war news, and rightly so, as the size of all the new trade tariffs, so far, is small when compared to the overall size of global GDP’s.

As well as Market Cap, another factor to carefully watch with CC’s is Market Volume. Currently, Bitcoin volume is struggling to stay above $4 billion, which is significantly below the more often seen $7 to $10 billion, when Bitcoin prices were in the $10,000 to $12,000 range. In a period of geopolitical uncertainty, all markets reflect the understandably nervous feelings of investors. Many Bitcoin investors expect prices to rise substantially in Q4, and watching daily volumes is one way that we will see this coming, and alert our readers to a great investment opportunity if one emerges. Similar to the 2014 correction, the CC market will need to experience a period of stability and recovery before surging to previous high levels, and that could take another four to five months. In the meantime, politics and regulatory gyrations will certainly continue, which makes the CC market place both exciting and challenging.

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Stay Tuned!