Timothy Enneking, managing director of Crypto Asset Management, LP, believes the bear market is largely over. He and other analysts believe that bears are losing their grip on cryptocurrency markets: cryptocurrencies are the green today after experiencing significant volatility since the start of this year. The market pundits expect digital currencies to regain momentum during the second quarter after posting substantial losses in the first quarter.
The fund manager has blamed four significant aspects for the considerable price crash in the first quarter. He said: “Asset consolidation, regulatory concerns, massive liquidation by the Mt. Gox trustee and startups’ selling crypto assets to pay salaries and expenses are all factors in the market’s overall decline.”
Timothy Enneking also claimed trader’s strategy to sell cryptocurrencies after huge price gains in 2017 added to the price crash.
Timothy Enneking Claims Are Realistic
The fund manager claims look undoubtedly sensible. The crypto markets have been under pressure due to regulatory concerns and panic selling. The crypto investors, however, are largely appreciating regulators efforts to reorganize the cryptocurrency markets.
Several countries have already developed guidelines for cryptocurrency exchanges and trading activities. Australia, Japan, South Korea and the U.S. are among the countries who asked exchanges to hold registration certificate and comply with other guidelines.
“It’s recognised that this reform will help protect their business operations from money laundering and terrorist financing, while regulation will also help strengthen public and consumer confidence in the sector,” AUSTRAC CEO Nicole Rose commented.
The reports of scams, frauds, and price manipulation have significantly impacted trader sentiments in the last couple of months.
Though regulators interference and trading guidelines may have a significant impact on illegal trading volume in the short-term, analysts believe these restrictions have the potential to control criminal activities and bring back trader confidence in cryptocurrency markets in the long-term.
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