Danish investment Bank Saxo Bank in its quarterly report wrote that cryptocurrencies are entering a new cycle and we can not exclude the growth of their prices in the second quarter.
Believes cryptocurrency Bank analyst Jakob Pouncey (Jacob Pouncey), the situation in the cryptocurrency market remains fragile due to high pressure regulators and prohibitions on advertising in social networks. But, he said, “we can not exclude the possibility of a comeback”.
While in the short term, perhaps lower prices because of the uncertainty in regulation market authorities and sales of large consignments of Trustees of the bankrupt bitcoin exchange Mt.Gox, the analyst added.
He stressed that the market was consolidating after the fall, and the sector began with the acquisition of kryptomere large companies. Victim of hacking into the Tokyo Coincheck has been bought by online brokerage Monex Group, Yahoo Japan acquired a 40% in Japanese BitARG, and the company Circle, which stands for Goldman Sachs, gained control of Poloniex.
With all this analyst, Saxo Bank, sees several developments that can serve as a springboard for the cryptocurrency market in the second quarter:
“If the stock markets will be a substantial rollback, 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 because of enhanced regulation and better investor protection could lead to a positive second quarter.”
According to Pouncey, the growth of the cryptocurrency market occurred in the period of global uncertainty, which included the Brexit, the United States presidential election and missile launches of North Korea. But this negative cycle for digital currencies is over. Now weaker investors leave the market, and the remaining will be waiting for good news. Due to this, in the long term, the value of cryptocurrencies will start to grow again, said the analyst.
Recall that in the traditional “Shocking forecast” in December Bank analysts Jacob Pouncey and Kay van-Petersen (Kay Van-Petersen) suggested that the price of bitcoin 20018 year will rise to $60 thousand, and then collapse to $1 thousand. At the beginning of this year van-Petersen predicted that the price of bitcoin could “break”this year’s $100 thousand.