The cryptocurrency market is unstable and unpredictable. The previous forecasts of crypto experts who worked in 2017 – 2018 in 2019 did not materialize. Before the spring rally, it was predicted that Bitcoin would fall to $ 2,000, and after the growth, many investors loudly declared that the main cryptocurrency was ready to update new highs. The upcoming launch of the Bakkt and a halving planned for 2020 are also associated with this. In fact, it turned out that all forecasts turned out to be incorrect. And even the predictions of an anonymous user who became a meme, which were previously error-free, did not materialize.
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We list the main factors that raise concerns and doubts among Bitcoin investors:
1. Cryptocurrencies are speculative
2. Legal uncertainty
3. Technical failures
This was the most popular answer among large investors surveyed as part of the Binance Research program. Cryptocurrencies do not have the advanced equipment used, for example, by the giants of the stock market Nasdaq and Dow Jones: their servers are capable of processing more than 1 million operations per second.
4. Confidentiality
5. Market crash
6. The lack of hybrid highly liquid instruments
Cryptocurrency platforms are presented to themselves. So far, large investors do not plan to abandon stock markets and currencies, which modern crypto exchanges cannot provide. The same applies to liquidity: with its increase, interest in crypto platforms will increase, but until then it is necessary to develop tools that integrate tokenized assets: stocks, commodity and foreign exchange markets, spot contracts, metals and the like.
The situation will change, and fears will be dispelled as current problems in the cryptocurrency market are resolved.
Platforms and services are being created that provide effective management of digital assets: exchanges with tokenized assets, products with automatic instruments for balancing investment portfolios and bots for trading through the API.
One of these services https://www.holderlab.io is a fully automated crypto portfolio management service. It analyzes cryptocurrencies using the correlation matrix, optimizes the distribution of the weight of cryptocurrencies in the portfolio and automates portfolio rebalancing. The system offers to test your portfolio on historical data with various combinations of rebalancing.