The Top 3 Reasons Investors are Bullish on Cryptocurrencies

2018 was a terrible year for cryptocurrencies.

One-time high-fliers like Bitcoin (BTC) slipped from lofty valuations near $20,000 to less than $4,000 in months. And while many investors have abandoned the space, there are still signs of solid reasons to get excited about fundamental growth.

Plus, many coins have become excessively oversold.

One, we’re watching for institutional interest

One thing we have our eye on is institutional interest in cryptocurrencies. 

We have to remember that Goldman Sachs and Fidelity are jumping into custody space.  

For example, Fidelity is launching Fidelity Digital Asset Services.

In fact, the new company will offer custody and trade execution for digital assets. All in an effort to target institutional investors like hedge funds and family offices.

“Our goal is to make digitally-native assets, such as Bitcoin, more accessible to investors,” said Abigail P. Johnson, Chairman and CEO of Fidelity Investments. “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”

Not only will Fidelity offer client services, and trade execution for digital assets, it will provide a secure, compliant storage solution. By doing so, it’ll help foster growth and potential further interest among institutions. Remember, institutions are the missing part of the cryptocurrency future at the moment.

We also have to consider there are plenty of cryptocurrency bulls that remain.

BitPay CEO, Stephen Pair for example notes that Bitcoin and cryptocurrencies will become widely used in as little as three to five years. 

"I used to say 10 years, but now I think it’s more like three to five years until you can go into a restaurant, a retail establishment, and everybody’s going to expect that that store will be able to accept a blockchain payment,” he says, as quoted by Forbes.

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Two, we’re watching for cryptocurrency clarity

We’re also looking forward to further regulatory clarity when it comes to cryptocurrency, too.   

The US SEC for example wants to see better market surveillance and custody for cryptocurrencies before being “comfortable” with a Bitcoin ETF.  

The good news – there are dozens of cryptocurrency custody solutions that have been announced or are on the market already. Fidelity for example is launching a company to handle cryptocurrency custody and trade execution for institutions, as noted above.

Even Coinbase, Gemini, and Bit Go are among those working on similar solutions.  

Once all the ducks are in a row, we’re likely to see a quick resumption of the crypto-uptrend most of us enjoyed in 2017. Stay tuned for more on this developing story.

Three, we have to consider that many coins are aggressively oversold

Look at Bitcoin for example.

After breaking down from a multi-month consolidation pattern, the coin has again found support just above $3,750.  If it can hold this level, it could refill its bearish gap around $6,000.

While the cryptocurrency market may appear dire at the moment, there’s still plenty to get excited about as we begin 2109.

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