The Chinese state-run media organization Beijing News reported that the cryptocurrency bear market is expected to continue into 2019.
Perhaps an unsurprisingly negative outlook is influenced by the country’s condemnation of Bitcoin and other digital currencies. Beijing News claims Bitcoin investments became a ”black hole” in 2018 with the coming year showing ”no obvious rebound” for the market.
2017’s bull run was called ”definitely unsustainable” by Xiao Lei, a currency policy analyst. Lei attributed the chaos of the run as leading to the unstable and declining market performance that followed.
Another issue raised by the Chinese analysts is a claimed ”zero-sum game” nature of the cryptocurrency market, meaning the only conceivable profits for investors are coming from somebody else’s pocket. From this perspective, the 2017 surge was an influx of less-informed newcomers to the market buying at higher prices, while seasoned traders made a quick profit off them.
Now the general public is more aware of Bitcoin and the cryptocurrency market with mainstream media covering the topic, the analysts believe newcomers would not fall for the same thing again, so to speak. As others are speculating, however, the influx of buyers may come in the form of institutional investors this year who often already deal in zero-sum markets.
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