According to a new report, the volume of crypto investments has plummeted to a two-year low. The report from Diar shows that the total value of all cryptocurrencies invested in during the first quarter of 2019 was $13.7 billion. A dramatic drop from the $32.6 billion invested during the same period last year. This decrease in investment can be attributed to a number of factors. It includes the bear market that has plagued the crypto industry for most of 2018 and 2019.
However, it seems that even with prices on the rise in recent months, investors are still not confident enough to put their money back into crypto. What does this mean for the future of cryptocurrency? Only time will tell. But one thing is for sure – if investment volume doesn’t pick up soon, it could be a long time before we see another bull market, as we did in 2017. Learn more about perspectives From the BTC Convention if trading interests you.
What caused the plummet?
When it comes to cryptocurrency investing, volume is key. A recent report from CoinGecko shows that trading volume for crypto assets has reached a new yearly low. The data shows that $50 billion worth of crypto was traded in the last 24 hours, down from $90 billion just a month ago.
There are a few factors that could be driving this decrease in volume. One is the coronavirus pandemic, which has caused economic uncertainty and led to a sell-off in many markets. Another possibility is that investors are simply taking a break after the rollercoaster ride of the past few years. After all, the total market value of all cryptocurrencies is still up significantly from where it was just a few years ago.
Whatever the reason, it’s clear that interest in cryptocurrency investing has cooled off for now. That could change quickly if there’s another major price rally or some other development in the space. But for now, the days of record-breaking volume seem behind us.
What will happen next?
The cryptocurrency market has seen a sharp decline in investment over the past year. According to a recent report, crypto investment volume has plummeted to a new yearly low. The report, published by Diar, states that total crypto investments fell from $12 billion in January 2018 to just $3 billion in December 2018. This represents a 75% decline in investment over the course of the year.
The report attributes the sharp decline in investment to a number of factors, including the bear market. In 2018, regulatory uncertainty and hacks/scams have shaken investor confidence. With the market still struggling to recover from last year’s losses, it remains to be seen whether or not the investment will pick up in 2019.
When the market will recover?
The crypto market has been in a slump for several months now, and there is no clear indication of when the market will recover. Many experts believe that the market has bottomed out and that the next few months will be crucial in determining the future of the crypto market.
There are a number of factors that could influence the recovery of the crypto market. The first is regulatory clarity. In many countries, regulators are still trying to figure out how to deal with cryptocurrencies. If there is more clarity on regulations, it could help to boost confidence in the market.
Another factor is an institutional investment. Currently, most institutional investors are still on the sidelines. When it comes to investing in cryptocurrencies for their goal. However, if more institutions start to invest in cryptos. It might provide the market with a much-needed jolt.
Another factor that influences the recovery of the crypto market is mainstream adoption. Currently, only a small minority of people use cryptocurrencies. If more people start using them for everyday transactions. It could help to increase demand and drive up prices.
The plunge in crypto investments is a worrying trend for the industry. It remains to be seen how long this current lull will last. For now, investors seem content to sit on the sidelines. And wait for more stable conditions before putting their money back into cryptocurrencies.
DISCLAIMER: This article is sponsored and does not substitute for professional advice or help. Any action you take upon the information presented in this article is strictly at your own risk and responsibility.