Cryptocurrencies are alive and well.
After a disastrous 2018, Bitcoin (BTC) has exploded from a 2019 low of $3,782 to nearly $13,000 today. That’s after the coin was trapped in a bitter bear market for most of 2018.
Not only are we see a sizable wave of FOMO (“fear of missing out”) interest, but many believe the unveiling of Facebook’s Libra could bring digital currencies to mainstream users. That, and “Smart money and institutions have certainly begun to come in,” said John Patrick Mullin, a cryptocurrency investor and blockchain consultant, as quoted by The Wall Street Journal.
Institutional interest is building behind the scenes, too.
Institutional adoption from Bakkt, JPMorgan, and Fidelity Investments seems to have reassured investors that Bitcoin and cryptocurrencies are not just a flash in the pan. and Robinhood offers cryptocurrency trading to clients, too. And earlier this month, Ripple Inc. agreed to invest up to $50 million in U.S. transfer company, MoneyGram International.
As institutions just begin to jump into the space, it’s likely to create FOMO – which refers to the fear of missing out on a potentially profitable opportunity. No one wants to be left behind. Fear of missing out will make investments attractive, once said billionaire. All as global corporations look to establish cryptocurrency products and services.
U.S. SEC Crypto Mom is Still Supportive
While the U.S. SEC has been slow to approve cryptocurrency, Crypto Mom is supportive.
In fact, Crypto Mom, Hester Peirce is fearful the cryptocurrency industry is being hindered by inaction from the U.S. SEC. “We should not be trying to guide innovation, but we also should recognize that we cannot stop it and embrace the potential for positive change that innovation offers. Our silence is likely to simply push this innovation and any attendant economic growth into other jurisdictions that have done their work and provided clear guidelines for the market participants to follow,” she said, as quoted by Coin Telegraph.
Cryptocurrencies may have had a poor outing in 2018.
However, with interest from institutions, retail investors, and support at the SEC, cryptocurrencies may just be in the beginning stages of quite a comeback.