The general feeling of continued market stability is coming under question. Some have proposed severe market downturns. The inevitable will happen, but when?
Whether you believe that someone has the crystal ball on market forecasting is entirely up to you. I am a student of history and history does repeat itself, though not entirely in the same manner or breadth each time, the overall cycle does come full-circle. I like to be prepared.
Will cryptocurrencies become a new hedge against market corrections? Will they replace, compete, or partner with precious metals and other traditional bear market safe havens?
As we near the decision of whether the SEC will permit Bitcoin ETFs (delayed until September 30, 2018), I believe that we will see a shift into this new asset class by large investors, banks, family trusts, and eventually, the individual investor. VanEck has proposed a $200k minimum to ensure that investors are in fact accredited and fractional shares will not be available.
Volatility will continue due to uncertainty in the news and various other sources about which cryptocurrencies will be the best bet in both the short and long term. For the up-to-date investor, that is anyone’s game. Regulatory frameworks are well under way, though likely out of sight to the average investor. As regulatory frameworks are developed, the landscape will change. Lobbyist groups, such as the Blockchain Association, are currently leading the charge across the political landscape representing companies like Coinbase, Polychain Capital, and others.
The end of Q3 and all of Q4 should have some very interesting action that I believe will give a little more perspective to the digital asset sphere. Particularly, the SEC review for the Blockchain ETFs and certain work in the blockchain/crypto sphere that is expected to go live, affecting the use of particular cryptocurrencies.
Best,
Rand
NOTE: As the domain name of this site suggests, the content my blog posts are opinion and not investment advice of any kind. Do your own research before making any decisions to invest (or not to invest). I am not a financial advisor. I am simply sharing information I gather from across the web, news, and media outlets and drawing my own possible conclusions.
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