The NY Consensus 2018 has become the most important and expected event in the crypto ecosystem. The best projects, authorities, and influencers gathered together last week to share ideas and make announcements that could potentially revolutionize the industry.
Many expected that during the week, Bitcoin price would rise as a result of increased market confidence. Such an approach would be logical, as, in previous years, cryptos followed this behavior.
One of the first to talk about this pattern is Tom Lee, CEO of Fundstrat. In an interview for CNBC, he was quite optimistic about bitcoin performance in the short term after the NY Consensus.
However, despite the optimism of several investors, Bitcoin’s behavior was not particularly bullish. According to data from coinmarketcap.com, Bitcoin had a value of $8,748 on Sunday, on Monday (opening day) the price was around $8,400 and by Friday its downward trend continued and it closed with a price close to $8,100
There was a bullish momentum in the week on Monday where BTC price went from $8,400 to $8,700 in 10 minutes; otherwise, nothing significant happened.
Regulations: Crypto’s Public Enemy No. 1
According to Tom Lee, the forecasts were very optimistic, but the conditions were not met for the soaring bullish run to take place. He believes that the only major problem preventing an increase in investment was government regulation:
CRYPTO: #Consensus2018 rally did not happen, very disappointing. What we needed was a trifecta of progress: (i) institutional custody/tools; (ii) buy-in by banks/investment managers; (iii) regulatory clarity (3 of 3 needed), but we got progress on (i) and (ii). Full text below pic.twitter.com/XcqNhgYgK7
— Thomas Lee (@fundstrat) May 18, 2018
These impressions confirmed the results of a survey conducted by Deloitte which was presented on the second day of the NY Consensus. The survey showed that regulatory uncertainty causes the biggest fear among investors.
Others have pointed out that one of the causes of the decline in Bitcoin price was the massive sale of the BTC by Mt.Gox Trustee Mr. Nobuaki Kobayashi.
Despite the Absence of a Bullish Rally, there are Reasons for Optimism
Other aspects (apart from the technical analysis) show a promising future for the cryptomarket. According to Mr. Lee, speaking to CNBC’s “Fast Money” only ten days in a year actually determine the price increase for BTC of an entire year; if the coin only grows on ten days across an entire year, by holding that coin you can still make a profit as it seems the overall gains made from those ten days, are greater than the losses the coin makes throughout the year. Watch the interview below for more clarity on the potential still to be had with Bitcoin:
— CNBC's Fast Money (@CNBCFastMoney) May 18, 2018
Another positive aspect that Tom Lee rescued was the announcement of Nomura’s interest in establishing a partnership with Ledger to function as a crypto custodian.
He also considered it essential to emphasize that Z-Cash, a privacy-oriented cryptomoney was listed on Gemini Exchange. This encouraged an upward trend in its market cap.
Furthermore, he mentioned that although people see Bitcoin as a “boring” currency, its dominant position will see it remain as the preferred one for major institutional trades.
Featured Image: twitter