Yes, the horror, the carnage, the blood in the streets! That is what anyone even remotely familiar with the cryptocurrency market will tell you as we have seen the overall market decline from a high, of a mere 17 months ago, of roughly $813 Billion to less than $250 Billion. That’s 69% of value lost!

In other words, if you invested $10,000 at the beginning of last year, you would most likely be now sitting on a whopping $3,100. Ouch! And, that’s just taking the market average which means you may have lost even more or all of your investment.

So, for those less familiar with the cryptocurrency market and financial markets in general, you may be asking yourself, “how does the market realistically return to its high value within my lifetime?” Well, the facts and market conditions speak loud and clear for those that are tuned in!

Perhaps what we are to experience is similar to what the folks in Auckland, New Zealand are waiting on? As everyone goes about their day across the globe they most likely are unaware of the massive volcanic eruption of unimaginable magnitude that is about to take place because of the 52 volcanos that comprise the overdue active field upon which the city was erected. That’s correct and a simple look at the facts and conditions confirm it!

Similarly, the cryptocurrency market is due for such an eruption based upon the facts and market conditions, its just a question of when! I imagine you are not familiar with the facts and conditions in Auckland, so I proved you the link to learn more on that topic should you choose and so that we may pivot to the cryptocurrency market and view the facts and market conditions that support such an imposing event.

The Facts

1. Relatively few people are educated about cryptocurrencies.

2. There are only an estimated 33 Million blockchain wallets worldwide with an estimated value of $245 Billion. Compared to billions of people that have paper money with an estimated value of $80 Trillion.

3. Even fewer are educated on the underlying blockchain technologies upon which these digital currencies exist.

4. The majority of all funds raised via cryptocurrency offerings were at a time when no rules or laws existed regarding such offerings.

5. The majority of the money raised was outside the US and from non-institutional sources.

6. The amount of money that comprises the market is a fraction of other financial markets

7. The majority of investments are by long term investors with a long-term time horizon

8. During the course of 2018 the US Securities Exchange Commission made it clear that a token or digital asset used in a fundraising process, known as an ICO (initial coin offering), falls within their jurisdiction and would regulate the offering of the trading of that security if deemed a security per the “Howey Test”. In laymen’s terms, this essentially meant that nearly every offering was a security that needed to comply with the SEC and this made offerings cost prohibitive, “Chilling Effect”

9. SEC opened investigations into completed ICO’s which put the brakes on projects that were already funded, projects in the midst of being funded and projects in the infancy of creation.

10. Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements have had a chilling affect on the market for fear of not being within governmental compliance.

11. Billions of dollars are flooding into private blockchain projects which are becoming publicized and bringing awareness to the technology that is the foundation of the digital currencies.

The Market Conditions

1. Investment in cryptocurrencies dramatically slowed

2. Volume has increased by more than 100% percent

3. Majority of coins and tokens are being held by people that invested for the long term and therefore are not being traded.

4. Speculators that were looking to get rich quick have been squeezed out of the market because of massive losses.

5. Projects that have not been able to demonstrate real merit are being quickly eliminated

6. The field is being cleared of bogus or poor projects thereby tightening the field

7. Many projects have lost traction because of insufficient fund raising due to the decline in the value of the funds they raised.

8. Private and Institutional money got scared

9. Smart money such as PE, VC and Institutions got educated and realized they wanted equity not merely tokens/coins.

10. Projects will deliver tech, ecosystems will develop, currencies will be adopted and utilized towards mass adoption thereby validating value.

11. PE, VC, and Institutional money will enter the market

12. A single investment by a significant player is substantial enough to dramatically move the price of the currency.

13. With any real volume of investment into a particular currency the price will soar as we saw at the end of 2017.

So, the big question is, when will the big crypto market eruption occur? Similar to, when will the eruption in Auckland take place? The answer to either may not be predictable within weeks or months but just as a few notable tremors may indicate the Auckland eruption is imminent we will most certainly see a few key investments into the market that give the warning that the market is about to blow.

Considering that players such as Microsoft, IBM, Intel, Oracle, JP Morgan, Santander, BNY Mellon, ING, Credit Suisse, Accenture, UBS, Citigroup, Pfizer, Salesforce, Visa, and on and on and on…. are all heavily invested into the development of blockchain technologies already and implementing them you can most certainly bet that the eruption will be arriving soon!