The so-called crypto bubble appeared ready to burst in the past weeks in the face of an alarming downtrend but the assets steadied eventually, and it came as no surprise that many investors are keeping the faith. Despite the rattling uncertainties that gripped the market, it is believed that cryptocurrency still holds a big promise.
There is no denying that Bitcoin and other similar assets were bruised by the fluctuations that characterized the exchange between April and May 2021. However, crypto watchers remain convinced that the tokens are primed for a big comeback. The expected recovery and the succeeding explosion will dominate the trading conversations for years to come.
Crypto Mass Adoption Still A Go
The projection is that crypto assets will soon see a supercycle phase, meaning the digital coins will creep their way into mainstream use. Such a scenario could prove to be the global economy’s defining moment for the decade, and it will play out driven by basic macroeconomic factors.
Crypto’s main attraction is its ability to function seamlessly on multiple platforms. One potential implementation is the decentralization of financial transactions, which will be made possible by blockchain – the technology that serves as crypto’s powerful and constantly evolving engine.
This feature alone makes cryptocurrencies a good investment proposition, prompting some analysts to compare the assets to the Big Tech stocks. Dubbed as FANG stocks (for Facebook, Apple, Netflix, and Google), these assets were initially assessed as risky investments but many investors took their chance and benefitted from the gambit.
The hope is high that crypto will take on the same path.
UK Investors View Crypto Assets Favorably
Crypto’s appeal has likewise reached Europe and investors from the United Kingdom are quite optimistic that the assets will continue to be on the growth route. The confidence stands on the rewarding experience delivered by cryptocurrency so far and according to the Financial Conduct Authority (FCA), a UK watchdog, the buying spree will likely be sustained over the long term.
To date, the FCA counted an estimated 2.3 million Britons as current holders of crypto assets and the surge happened despite the advisory issued by the government that investing in digital coins is highly speculative. The data is suggesting that for UK investors, it’s worth the trouble to make a play on Bitcoin and other virtual currencies.
Bitcoin generated excitement when it hit a high of over $64,000 in April but the following weeks proved crippling to many when the trading this week closed and the token stood at just over $39,000. Notwithstanding, most crypto investors are not thinking of abandoning ship and many still hold a positive outlook of the market.
The FCA said better information on crypto trading is badly needed as bettors must know that playing the game will point to two likely consequences – the possibility of winning and losing.
Crypto Dip Still Makes The Assets A Good Buy
Now that the crypto assets are shedding much of the value picked up from the past 12 months, exiting the market is not a wise move. The latest note from Canaccord Genuity indicated that the exchange, specifically Coinbase, is a good buy moving forward.
The assessment is anchored on the prediction that Coinbase is slated for expansion. The platform will ultimately grow its business and delve into cloud solutions and decentralized finance. These elements are the wave of the future and Canaccord says Coinbase enjoys the edge because of the firm’s command of blockchain technology. Simply put, blockchain is dripping with huge opportunities and Coinbase is at the core of the entire ecosystem, thus making the company’s future somewhat robust.
It’s clear that making a bet on crypto assets and other investment instruments requires a solid grasp of market knowledge, and it is something that a well-equipped financial service firm can offer.
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