Don't Panic! Why the Future of the Crypto Market is Super Exciting

in bitcoin •  4 months ago

Sweep Binoculars Final.png

The floodgates will open to a massive influx of Institutional money this year, due to more regulatory oversight and secure custodial services. The CTFC Commissioner recognizes the value and "transformative" nature of cryptocurrencies.

According to founder and CEO of Abra, Bill Barhydt and many others, big institutional investors are waiting to enter the cryptocurrency market;

Barhayt picture.png

Barhydt quote.png

Insto waiting for.png

Firstly, there are welcome signs that stricter regulatory oversight of the cryptocurrency market is being put into place. This is the first measure that institutional money is waiting for, before pouring in the huge sums they have waiting on the sidelines.

The CTFC are aware of the potential that cryptocurrencies have as another asset class and to transform our societies, so they are stepping-up their regulatory oversight in order to root-out price manipulation that distorts the market. To achieve this, the CTFC has subpoenaed Bitstamp, Coinbase, itBit, and Kraken for their trading data. It is the combined average Bitcoin spot price taken from these four exchanges that forms the settlement of futures contracts every month. The CTFC had previously requested trading data from cryptocurrency exchanges in January, which resulted in non-compliance.

This follows on from the announcement that the CTFC and DOJ are investigating to see whether there is any evidence of price manipulation. As stated in one of my previous posts, the "CFTC's jurisdiction is the futures and options markets, it can take action where it sees fraudulent spoofing and wash-trading practices on the cryptocurrency exchanges, just as it does in other financial markets."


As I'm sure the learned Steemit community already know, a paper published by the Federal Reserve earlier this year concluded that the launch of Bitcoin futures, in December 2017, had been responsible for the fall in Bitcoin's price since then.

Goldman approval.png

The second thing that large institutional money is waiting for is reputable and secure custodial services, which Circle is seeking to provide.

goldman circle.png

Circle is set to become an OTC exchange for institutional money. SEC approval in the US, would give Circle a credit rating of at least A, since they are backed by Goldman Sachs. Circle could then obtain a custody license, which essentially means in a regulatory and legal sense that Circle have ownership and responsibility for any digital assets that an institution holds with them and institutions will have the assurance that these will be stored in a cold wallet offline, without the risks of being exposed to an exchange hack.

Some of the largest fund managers in the world, such as Blackrock and Fidelity have trillions of dollars under management and they are in the process of employing cryptocurrency traders, so they will pour billions, maybe trillions of dollars into the cryptocurrency market, once Circle has SEC approval, a credit rating and a custodian license.

These large institutions view cryptocurrencies as a new asset class, which will provide higher returns compared to the others. For example, the 66 trillion-dollar equity market may provide a 3% yield on dividends and the 80 trillion-dollar bond market typically pays interest of 2 – 5%.

The importance of a custodian agreement is the reason Coinbase is seeking FSA approval in Japan, which will give them access to huge sums of Japanese institutional money. Once regulatory measures are in place in the US, we can expect Coinbase to follow the same path as Circle, which will be good for ordinary investors, not to mention the NYSE and NASDAQ developments.

This is all part of the mass adoption of cryptocurrencies, which will happen soon, so we shouldn't panic about the current state of the market. The CTFC Commissioner, Rostin Benham, has given us another indicator of the cryptocurrency boom we are about to witness, which explains the CTFC's stance on more regulatory oversight;

RostinBehnam (InnerPortrait).jpg

Benham quote 1.png

Regs across the globe.png

Here's another indicator of what the future holds for cryptocurrencies, a much overlooked quote from the IMF World Bank Conference 2018;



Satoshi GIF.GIF

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

2018 the Year of Waiting. Wait for January bonuses, Wait for tax season. Wait for institutional money. When will the waiting stop... better yet wake me up when moon. :P


There is tangible evidence now that the wait for institutional money will be over soon. For the reasons mentioned in my post, the Wall Street bonuses scenario was always a non starter. The fall in Google trends and the number of DUAs, means that we need this institutional money to get the market going again and then the ordinary investors will come back. We've seen a lot of FUD, but I'm sure once the institutions have a stake in the market that all we'll hear is how wonderful everything is.

Completely agree with this post, many people including myself have faith that this is a multi-trillion dollar industry. Best of luck friend.


Thank you, best of luck to you.

Absolutely right crypto currency is the future payment method of goods and services. It will certainly go to the moon. Hold your patience , good days are coming soon.

Many persons are now complaining because the market is "red". That's because the don't uderstand how does it work...Instead of complaining the should start to educate themselves. You shouldn't invest your money in something you don't understand...It is truism but many "investors" make that mistakes and later they become "crypto-haters"...
Upvote for you and greetings! :)

As long as you're gaining BTC, USD doesn't matter. HODL!

That sounds great! I will buy some crypto at this low price! I will be RICH :))


Make sure you add a large chunk of XRP. If any of the cryptos in this market are going to the moon, one of the most likely seems to be XRP.


Cool!Thank you!

Very well researched article. I couldn't agree more. The future is exciting.


Thanks, get ready for lift off.

I have the feeling you are right and I've felt this way for some time now. But, every time I buy in thinking it is at the lowest it goes lower; so all my money is tied up right now until it all goes back up again. One of the coins I do want to buy into is XRP and EOS because I think these 2 will go right up there. Also I've been trading on IOStoken and find it very robust. Thanks for this article, it reinforces what I'm thinking about it all...


Thanks for your comments. By rights, we should be at the long term support level for Bitcoin and if it goes any lower, then it breaks market structure, which wouldn’t be a good thing. I don’t think that will happen, but nobody can really say. Until we get a regulatory framework and institutional investors, the market will continue to move up and down within a certain range. Good luck and I also have some IOS 👍


Thanks bill, let's hope it all works out for the best for everyone of us that invest in it