Bloomberg News is back at FUD-ing ship when it comes to crypto. They are now reporting about a Juniper Research which warns that metrics around cryptocurrencies paint a bleak picture for its future and predicts an imminent implosion.
The metrics that they used in their research are trading volume of bitcoin which fell from 360,000 BTC in late 2017 to 230,000 BTC in September 2018. The same indicator represented in USD reveals even bigger fall: from $3.7 billion to $670 million daily in the same period.
Since the rest of the market is a loyal follower of bitcoin behaviour, trading volume dropped in the same fashion for the whole market. In the first quarter, cryptocurrency transactions totaled just over $1.4 trillion, compared with less than $1.7 trillion for 2017 as a whole, Juniper said. However, by the second quarter, transaction values had plummeted by 75 percent, with total market capitalization falling to just under $355 billion.
“Based on activity during the first half of Q3, Juniper estimates a further 47 percent quarter-on-quarter drop in transaction values in that quarter,” the researcher said in an accompanying white paper.
Many of cryptocurrency enthusiasts were hoping that struggles of traditional system reflected by strained US-China relationship and imminent British exit from the EU, will be an adoption boost for crypto as a good hedge for investors. That hasn’t happened, at least not yet.
“In short, given our concerns around both the innate valuation of Bitcoin, and of the operating practices of many exchanges, we feel that the industry is on the brink of an implosion,” Juniper said.
Although this research is not an optimistic one from the viewpoint of crypto investors, it is still just part of a regular attack habit of mainstream economists and institutions influenced or led by them. Basically, nothing new here, moving on.
