Bitcoin Market Nightmares: Whales And Hodlers To Blame

As mentioned earlier, sustained demand for the crypto-coin is fundamental in attaining a stable value. As demand support diminishes, it will become harder to make out a strong cryptocurrency market bottom.

Unlike national currencies, where central banks control value and maintain use and circulation within economies, cryptocurrencies have no such mechanisms.

Ultimately, the bitcoin’s value is likely to stay under the influence of the whales. Of course, some events such as ETFs can influence bitcoin prices. However, these are rare occurrences that have yet to happen and are unlikely to in the near future given the turbulent state of the sector.

Is Bitcoin Doomed?

The bitcoin market is still the largest in the cryptocurrency industry by market capitalization. As things stand, a whole set of industries has been built around it.

Some of the biggest names on Wall Street had already started to push for wider adaptation of the digital currency. Intercontinental Exchange, which owns the New York Stock Exchange is currently working on a bitcoin futures trading platform dubbed Bakkt.

And in October, Fidelity Investments, a wealth management and financial planning behemoth with over 27 million customers, announced plans to offer crypto custodial services to investors. This and related efforts by established companies is bound to positively impact bitcoin’s growth at some point.

What greater integration of bitcoin into world financial systems means for investors is that a sizeable price upswing would have highly magnified effects.

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