Managing director of Crypto Asset Management, Timothy Enneking, said Monday that he believed the poor trading conditions in the cryptocurrency market were largely over.
He cited several reasons behind his prediction. Firstly, he theorized that many investors benefitting from the massive gains in the market last year, notably Bitcoin, chose to consolidate their profits and sold off their cryptocurrency assets. A significant number of traders doing this could viably create the recent market slump.
As well as this, Enneking noted that regulatory concerns were discouraging investors. Although he did not refer to any specific circumstance, India recently prohibited banks from handling cryptocurrency transactions, while the US Securities and Exchange Commission (SEC) subpoenaed multiple startups holding initial coin offerings (ICOs). The SEC confirmed dozens of investigations were being carried out.
Enneking also mentioned that to a lesser extent, the massive liquidation by an exchange platform user under the handle ‘Mt. Gox’ encouraged the market decline. He believed that startups selling off assets to cover salaries and expenses could also have been a contributing factor.
Market rebound
While these components have mostly been priced into the market already, Enneking commented on Bitcoin’s overall falling market share. He sees this contraction of Bitcoin dominance as directly related to the decline in correlation between Bitcoin and other currencies, as alternatives are beginning to have their value determined more by their own quality and popularity.
Despite the recent trough, Enneking’s report acknowledges that the cryptocurrency market is still up by over 600% in the last 15 months. The nature of recent contributing factors to the slump, combined with the larger scope of growth, are indicators for Enneking that the market will soon be rebounding.
Enneking’s firm, Crypto Asset Management, was founded last year and is responsible for managing approximately USD 20 million in assets. From its high in January, the company’s CAMCrypto30 index experienced a fall of 69%.
The post Crypto Asset Manager Says Bear Market Coming to an End appeared first on BitcoinNews.com.