Bitcoin Global News (BGN)
May 03, 2018 -- ADVFN Crypto NewsWire -- The often predicted
correction that stops Crypto’s wild ride with a crash that wipes
out half the market, might be closer than we think. In a report by
CNBC today, it was stated that there’s a logical chance
that up to 90 percent of the Cryptocurrency market’s value could be
wiped out in a year.
The idea and the rationale for this
came from an investment bank called GP Bullhound’s report titled,
“Token Frenzy:
The fuel of the blockchain.” The mention of this
correction is quick and couched between predictions related to good
times to come in the Crypto-space, at the tail-end of the report.
Just after declaring that such a large correction in the market is
essentially inevitable, the bank moves on to add that the losses of
most of the market will lead to exponential growth for the
remaining firms.
In addition to its optimistic conclusions, almost the entire body
of the report consists of optimistic predictions. For
example, Joseph
Lubin from Consensys and Prof. Emin Gün
Sirer, a Blockchain researcher from Cornell University,
offer up their industry experience related to Ethereum and public
vs. private blockchains. In addition to this, known-figures
like Tatu
Kärki, the communications lead from the Aragon
project, talks about the importance of governance in the
Blockchain space.
With the involvement of these three
as well as other industry insiders taking up the bulk of the
report, it appears less like an impartial audit of the current
state of the industry and more like an industry-approved set of
predictions on the future of the Blockchain.
In the end, the summary leaves out
the rationale for said market crash, but it does appear
that CNBC
interviewed Sebastian Markowsky, the lead author of the
report, to clear this issue up.
In short, Markowsky reportedly said
that the beginning of the troubling times for the market will be
when institutional investors come in full-force, later this year
and drive the prices up in a way that we have never seen
before.
Following this, buying will occur
at all-time highs when people see trusted investors showing
confidence in the crypto market. Effectively, this will be yet
another instance of massive buying in a short amount of time,
simply due to fear of missing out.
Markowsky then adds that the market
will experience a flurry of selling in response to this, which will
lead to the previously mentioned crash. After this, he simply
states that exponential growth will begin again.
All in all, Markowsky and GP
Bullhound’s report leaves a lot of questions unanswered. Are there
any more logical explanations as to when and how these rapid
periods of buying and selling will occur? Is there any
privileged information that GP Bullhound has on any of these
subjects that the average investor is not yet privy to? Is this all
simply wild speculation?
As the year goes on, keep your
finger on the pulse of this prediction. It remains to be seen
whether it will happen like GP Bullhound claims it will or whether
a crash will occur at all. The only point that can be said with a
relatively high level of certainty is that the market has a history
of volatility. Therefore, taking a second look at your portfolio
and making rational adjustments might not be a bad idea at this
point.
By: BGN Editorial Staff