eToro: Preference for Stablecoins as Alternatives to Continue in 2019
The end of 2018 wrapped up what has been one of the worst year’s for the crypto market, with Bitcoin dropping to its lowest levels for the year.
But as we enter the first full working week of 2019, what can the market expect throughout the year? With Bitcoin sitting, for now, above the $4,000 mark, according to CoinMarketCap, can we see the number one asset making another rally this year? Or will attention be diverted to an alternative?
According to eToro, the social trading platform, the price rally of Bitcoin over the Christmas period, known as the “Santa Rally,” which pushed the crypto asset over $4,200, was “led by investors closing high-risk sell positions ahead of Christmas, creating upward pressure on market prices.”
However, despite this, it’s CryptoPortfolio fact sheet for last month, indicates that the return in the last 12 months was -83.29 per cent.
Even though market prices have slumped of late, Bakkt, a crypto exchange created by the Intercontinental Exchange (ICE), the owners of the New York Stock Exchange (NYSE), raised over $182 million from a number of institutional investors. While it’s still seeking regulatory approval, the aim is to launch a one-day physically-launched Bitcoin futures. It’s hoping to start this in early 2019.
Nasdaq, too, has indicated its interest in Bitcoin futures. Yet, even though the market has remained in a rut or downward trend for most of last year, in eToro’s opinion this isn’t something that should be “underestimated.”
eToro also noted that the late December price rise with Bitcoin was down to the fact that there were rumors circuling regarding social media platform Facebook, which was to start using cryptocurrency for transferring money through WhatsApp.
eToro said: “The tech company is reportedly developing a stablecoin, which is pegged to the U.S. dollar, marking another significant step forward for institutional investment in cryptos.”
It is because of this move toward a stablecoin that eToro believe this is the direction that people will be turning to in the year ahead, adding:
“Recent market volatility has opened the doors to alternative coins, as the mainstream tokens remain risky in the eyes of many. The preference for stablecoins as alternatives is something we expect to see continuing as we enter 2019.”
Of course as we enter 2019 many young investors have never experienced a bear market before, so they may not necessarily know how to build a solid portfolio.
In order to give investors the best chance possible Mati Greenspan, senior market analyst at eToro, will be hosting a webcast on Tuesday, 8th January at 15:00 GMT for one hour to discuss topics from crypto to tech stocks, currencies and indices, in addition to exploring what the best trading opportunities are within the current market conditions.
To register, click here.