Crypto Space Appears “on the Brink of Implosion,” Says Juniper Research Report

 In Altcoins, Exchanges

Indicators for Bitcoin and the entire market show a tendency for further price slides and loss of interest.

Indicators in the crypto market suggest it is “on the brink of implosion,” says a new report from Juniper Research. Despite some positive developments, declining volumes and waning trust in the sector may lead to lower prices for Bitcoin (BTC) and continued struggle for altcoins, according to the UK-based economic and finance trends researcher.

After nearly 11 months of sliding prices, the crypto community has expected a “capitulation event” for digital coins although prices have stabilized for now. Juniper Research said that Bitcoin should rise in periods of economic uncertainty for traditional markets.

“If Bitcoin cannot make gains in such favourable circumstances, then it is unlikely to prosper as and when these issues are resolved,” researcher Windsor Holden commented in the report.

The overall tone of the paper is equally pessimistic:

“We feel that the industry is on the brink of an implosion.”

The other trend Juniper Research noted is the decline in Bitcoin network usage and the significantly lower levels and value of transactions. While trading hovers between the equivalent of $3.5 billion and $5 billion in 24 hours, some of the orders can be easily faked. At the same time, real-life usage of the network remains stagnant.

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Bitcoin’s network still sees more than 500,000 transactions in 24 hours, as per Blocktivity. However, data show that much smaller funds are transferred in dollar equivalent. One of the reasons is the lower price of BTC, but shrinking transaction sizes is also a factor. During the peak times for Bitcoin in December and January, 24-hour transactions reached the equivalent of $4.6 billion, but the levels have now fallen to $500 million.

BTC prices are 68% down from their peak levels, while some altcoins have lost 95% to 99% of their value. For this reason, Juniper Research is pessimistic, also citing the fact that mainstream finance leaders and economists still see the crypto space as a potential scam.  The research group also noted the decline of retail interest in crypto coins as indicated by sliding volumes on Coinbase, as well as bans on buying digital assets with credit cards.

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