- Prominent hedge fund names and billionaires have started to show their support for the ICO industry
- The VIX index is nearly twice more volatile now than Bitcoin
Bitcoin’s market cap has dropped to $108 billion. The price is trading at $6715 and year to date it is down nearly 53.07%. However, I do think, that the tide is about to turn for Bitcoin and it won’t be long before we see a major move. The evidence is in the hash rate which is consistently increasing, meaning, that miners are still very busy, and they hold the view that the price is going to rise. The hash rate has increased from 16EHash/s to 37EHash/s year to date.
Speaking from a fundamental perspective, there has been more positive news when it comes to Bitcoin than negative ones. The flow of news is an important element to measure the sentiment and you know that the reversal is on the cards when the momentum changes.
So, why do I think that there has been more positive news? Well, if one reads the recent headlines, it becomes clear that positive ones are outpacing now. For instance, Coinbase moving into the security coin listing space is the most obvious one. US-based cryptocurrency exchange Coinbase Inc. gained the approval of SEC to list security tokens and provide a broader range of financial services. Of course, it confirms that the landscape over in the US is becoming friendlier.
Prominent hedge fund names and billionaires have started to show their support for the ICO industry. There are more news coming out daily and these billionaires and hedge funds are disclosing their investments in the ICO projects. This sends the signals that not only the serious investors are highly interested in the ICO projects but also, they are no longer anxious about the regulatory issue. Professional investors backing up an ICO project is a major deal. It is a sign of confidence and it attracts huge interest from retail investors.
Higher volatility is something which can push the retail investors away. Why is this? Investors would search for alternative assets. Critics have also pointed out many times that Bitcoin’s volatility is abnormal, and this hinders its adoption. I have compared the Bitcoin 10-day volatility to VIX index 10-day volatility. The VIX index is nearly twice more volatile now than Bitcoin.
