Specializing in online trading and investment Saxo Bank has published its quarterly Outlook for global markets, affecting in particular the topic of cryptocurrencies, which, in his opinion, can stand on the threshold of a new cycle. This writes CoinJournal.
In a release yesterday, 18 April, 35-page document Quarterly Outlook Q2 2018 Saxo Bank focuses on such issues as approaching the completion of the largest in the history of mankind the experiment in the field of monetary policy, rising nationalism, all the more glaring social and economic inequalities, as well as a growing lack of hope among the younger generation.
In addition, one of the areas in which Saxo Bank analysts paid particular attention, was the bitcoin and other cryptocurrencies.
In particular, the document raises the issue that cryptocurrencies may be included in the new cycle of its development. So, after unprecedented growth to historic highs at the end of 2017, when the price of bitcoin got to $20 000 in the first three months of 2018 digital currency has considerably fallen in price.
“Losing more than 50% in value, bitcoin showed the worst first quarter and the second worst quarter in its history”, — the report says.
Says cryptocurrency Saxo Bank analyst Jacob Pouncy, the situation continues to remain fragile due to increasing pressure from regulators and a ban on advertising in the largest social networks. However, “it is impossible to exclude the possibility of resumption of growth,” he added.
Jacob Pouncy believes that in the short term, may experience further decline due to the same regulation and ongoing sales of large consignments of Trustees of the bankrupt bitcoin exchange Mt Gox.
At the same time, he notes that the previous sharp fall in consolidated market, and the sector has become a witness of how a large organization has gained cryptocurrency exchanges. Among these acquisitions, he calls the purchase of Coincheck, a Japanese online brokerage Monex Group, purchase 40% stake in Tokyo BitARG, which recently implemented Yahoo Japan, and passed under the control of the company Circle popular exchange Poloniex.
The analyst highlights a few events that have the potential to become a springboard for a bullish market in the second quarter.
“If there is a significant pullback in the stock markets, will start the flow of money in uncorrelated assets or assets that are outside the traditional financial system. And cryptocurrency is a potential alternative. The influx of institutional capital into the cryptocurrency market due to a higher regulation and better investor protection may lead to a positive second quarter,” said Jacob Pouncy.
Observed in the last two years the rise of cryptocurrency has occurred against the background of General geopolitical instability in the world, where the key event was the election of Donald trump for President of the United States, a referendum on the British exit from the EU (Brexit) and nuclear testing in North Korea.
And according to Jacob, Pounce, the current negative cycle is also sooner or later come to an end. Weak investors will leave the market, and those who remain will be in the expectation of further positive news.
We will remind, in December 2017 Saxo Bank has published its traditional annual list of provocative and shocking predictions. In particular, analysts of the Danish Bank said that in 2018 the global economy will face a shock wave, which may include weakening of the independence and control of the American and Japanese Central banks, the collapse of the stock of the S&P 500 index, political tensions in the European Union and the loss of investor interest in bitcoin.