The Tango between Wall Street and Crypto Markets

Earlier 2019 many speculations viewed $4,000 as Bitcoin’s key level of support, and cryptocurrency trader Anthony Grisanti laster predicted that Bitcoin price could fall below $3,000 support level due to a massive sell-off.

CoinMarketCap data shows, as of 4 p.m. New York time January 18th, the crypto market has experienced an overall decline in the past 24 hours.

Bitcoin fell 0.46 percent to $3,652.51. XRP was down 1.57 percent to $0.3230. ETH dropped 1.79 percent to $121.00. TRX declined by 2.88 percent to $0.0249. Meanwhile, Binance Coin was the only crypto among the top 20 that saw gains, posting a 4.2 percent increase to $6.55.

CCN reported today that crypto brokerage firm BitOoda predicted that Bitcoin is likely to experience further declines amid last week’s sell-off, but this decline will likely strengthen the currency in the long run. Most importantly, the next sell-off might be exactly what crypto markets need — enticing Wall Street to buy on the dip.

BitOoda concluded that if Bitcoin falls below $2,500, institutional investors would likely to rebalance their current holdings in an attempt to add exposure to crypto markets, especially Bitcoin.

By comparing historical price movements of Silver in 2011 with Bitcoin’s price movements from the beginning of last December, BitOoda found similarities between the two and provided hints that, for bulls, Bitcoin’s price might have to drop to $2,400 before re-establishing key support levels.

Crypto markets as a whole views Wall Street as a meaningful step forward to a prospective end solution of cryptocurrencies’ massive adoption. However, a drastic $700 billion loss in market capitalization at the fourth quarter of 2018 has become one of Wall Street’s most important concerns with regard to this market.

Traditional financial institutions including Goldman Sachs, Morgan Stanley, Fidelity Investments and Nasdaq, have been working on the infrastructure of the crypto market. But the ongoing regulatory uncertainty has become a key headline risk for other potential institutional investors.

News from Nasdaq yesterday mentioned the main cryptos, such as BTC, XRP, ETH, are here to stay in 2019. The question is who will be with them at the end of the year?

Photo: Pixabay

Author: Nicole Wei

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