Since December 2017, Bitcoin and most virtual currencies have been in a bear market. It has been very difficult for the trend to experience a strong reversal. Back in June, an analyst at Ambrosino Brothers known as Todd Colvin, said that it is difficult to be optimistic about the cryptocurrency market in the short term. According to him, the market needs more regulations that would provide clarity to the market.
The Crypto Market Needs Regulations
The truth is that during the last years we have seen how hackers and scammers harmed the crypto market and the ecosystem. Investors need to be safe and sure that their investments are protected in the market if they want to place big bets.
The analyst pointed at two attacks that happened this year in South Korea, Bithumb and Coinrail lost $30 and $40 million dollars respectively. These hacks helped investors lose confidence in the market and in the crypto space in general. And indeed, the price of Bitcoin fell under $6,000 in late June.
The lack of clarity and regulations in the market is harming the industry as a whole.
Colvin commented on the matter:
“Right now the government doesn’t really know how to define or quantify what Bitcoin is. They don’t call it a security, so it doesn’t fall under the SEC umbrella. It’s still very confusing.”
At the same time, regulations are different from country to country. Some states have decided to impose very hard regulations while others are trying to include virtual currencies to their economies.
“Nobody can get their hands on it (Bitcoin),” Colvin commented. More accessibility will bring higher Bitcoin prices over the long term.”
It is also important to increase accessibility to the crypto market. More individuals using these digital currencies will increase their price and will also help spread the word about the positive aspects of cryptocurrencies.