In an interview with Business Insider, authored by Oscar Williams-Grut, Abra CEO Brit Barhydt said that Western institutional investors will put money into crypto this year. In his words, “Once the floodgates are opened, they’re opened.”
The price of Bitcoin was at its peak just over a week before Christmas before starting to decline. There has been considerable speculation as to the cause of this decline. Some people have blamed it on FUD in Korea and other markets, where bans and regulations were expected. Others blamed it on holiday shopping, both for Christmas, and again leading up to the month-long celebration of Chinese New Year’s. Still others saw the recent Mt. Gox sell-off as a cause. But, perhaps it’s much simpler than any of these ideas.
We are not financial advisors, and this is just an opinion. However, Bitcoin caught fire at the end of 2017 because of its explosive growth, which led to more news stories covering it, which led to more explosive growth as people FOMO’d in. Now that the hype is approaching baseline, so to is the price of Bitcoin, and other cryptocurrencies that follow its trend.
In 2017, we saw price resistance at just under $5,000 in September. Bitcoin dipped to under $4,000 then broke through the $5,000 barrier in October and went on a massive bull run until mid-December before starting to decline. One can speculate that part of this is because of all of those get-rich-quick visionaries who jumped in when it was in the $20,000 range are now losing patience and dumping their coins. When the short-termers are gone, what will be left are the HODLers that form the base. By extension, the only way to go from that point is up.
Abra has the backing of American Express, according to the article, and other institutional investors are putting their money into similar projects. Barhydt also expressed that there are financial institutions in Japan that are investing in cryptocurrencies and related projects, which he credits for some of the price rallies towards the end of 2017. If these institutions thought that crypto was a bust, they would not invest in such technology. We know that these companies are in this for profit, so we can expect that their future behavior will be in accordance with their end goals.
Abra is a mobile app that allows you to buy, store and invest in 20 different cryptocurrencies. It is not the first app of this nature, and it will not be the last. We covered the story on Abra on March 16, when Litecoin was added to the Abra exchange. Part of what makes Abra different is its institutional backing, and this is what Barhydt believes will propel the cryptocurrency market through the end of 2018. With those large investments come stability, credibility and growth. By the end of the year, Bitcoin may very well break through $20,000 again, and beyond. And with apps like Abra on the rise, the alt coin market may very well follow a similar upward trajectory to Bitcoin.