Many cryptocurrency investors and even potential investors floaked into Manhattan for this week’s Consensus 2018 Conference. Because of this much-hyped conference, the prediction from Bitcoin Bull’s like Fundstarat’s Tom Lee was that the gathering would trigger a market rally. However, not even the rented Lamborghinis or even the 1,000 person yacht party with entertainment from world’s finest rapper Snoop Dogg would prevent the value of digital currencies tracked by marketcap.com from sinking by 50 billion dollars.
Particularly the price of Bitcoin went down by 5.2 percent this week to trade just above the 8,000 dollar mark even after Arthur Hayes who is an exchange executive predicted a surge to 50,000 dollars before the end of 2018. Hayes firm rented the Lamborghinis used in the event. Even though this week’s drop is far from extremes by crypto standards the market resistance to Blockchain Week’s Ballyhoo highlights arguments that the most potential buyers already bought enough Bitcoin during last year’s epic surge.
As many bulls hope for more institutional investors, it’s not cleared whether regulators in the United States and other countries will evolve to put in place regulations which would attract the institutional investors. Many people may not have a proper idea what actually cryptocurrencies are. A survey carried out last year showed that many investors invested in cryptocurrency because of peer pressure and for fear of being left out without actually knowing how the market worked. Many Wall Street investors have also come out dismissing the market terming it as a speculative bubble with Warren Buffet linking Bitcoin to rat poison.
According to Sunny Lu who is the CEO of VeChain Tech which is a Blockchain-based logistics company, this week’s losses may have occurred as a result of unmet expectations which were associated with the 2018 conference. Lu stated that:
“I think people were disappointed by the quality of projects and even the speakers because it was not as good as they expected.”