There is no doubt the crypto space has been beaten down by the open-ended bearish market, it has stirred up a lot of speculations from both novices and experts in the financial industry. Thou cryptocurrency is an emerging market, it has drawn so much attention, always in the monitoring eyes of the public. Just like every other segment in the financial sector, it is continuously criticized.
The crypto market has been on a swing mode, surrounded with a lot of uncertainty and instability. Though it is a viable investment tool, the prolong bearish market is a source of worry to potential investors. From last month up till now, billions of dollars have gone down the drain as a result of the fluctuation in crypto prices.
According to analysts from one of the biggest global investment bank JPMorgan Chase and global market strategist, Nikolaos Panigirtzoglou, the interest of institutional investors in bitcoin is fast fading away. They supported their observations with facts that; The value of bitcoin future has gone low due to the decreased investor interests. Referring to the number of open contracts on bitcoin futures on the Chicago Board Options Exchange (CBOE) global markets, the experts reported that the index reached the lowest level since bitcoin future trading was launched on December 10, 2017.
They also reported that the average volume of transactions done in the crypto market has gone down to $5,000 it was last year, to $160. Another point stated is the drop in crypto mining profitability which has caused miners to turn their focus away from bitcoin mining. The high cost of mining facilities, running cost has pushed miners out of business.
The cryptocurrency has not gained full awareness, so many potential investors are being cautious and would prefer monitoring the market. But the continuous downward slide in the prices of the digital currencies is not favorable to investors who wouldn’t want to lose their hard earned money.
All these issues reported by the analysts are scaring away both private and institutional investors from the crypto space.