Enneking believes the market will rebound soon
Managing director of Crypto Asset Management, LP, Timothy Enneking, announced this Monday that the cryptocurrency market is soon about to bounce back.
Founded in 2017, Crypto Asset Management already has roughly $20 million in assets under management. The company saw its cryptocurrencies index fall by 69% after its last peaking back in January. For this collapse Enneking has observed four reasons.
- Asset consolidation
- Regulatory concerns
- Massive liquidation
- Asset sale
After the severe liquidation by trustees at the Mt. Gox, and startups’ liquidating crypto assets to pay salaries and expenses have been crucial and contributing factors for the decline in the market. He feels that the consolidation after the amazing increase in 2017 had cascading effects which contributed greatly toward the pulling back of invested funds.
It is also possible that the investors may be vigilant owing to the regulatory actions off late. While no specific events were mentioned, the report is released only weeks after the U.S. Securities and Exchange Commission startups with initial coin offerings to appear before the court.
Despite any news on what the SEC has been after, it has still been confirmed that an extensive investigation is undergoing.
As per Enneking, it must be noted that despite the recent fallout these factors have already been estimated into the cryptocurrency market, which has been up 600+% over the last 15 months. Enneking also commented how the share of bitcoin share in the overall cryptocurrency market has dropped significantly from 45.7 in December to 44.3 percent. Coincidently, this plunge in the bitcoinS dominance over the cryptocurrency market has occurred at the same time when the reciprocity of the bitcoin with other cryptocurrency is dicy. Even though there is no defined interpretation of this adeclining correlationa in the report, it could mean that the individual value of cryptocurrencies has begun impacting its market price.
Enneking concludes by asserting that these factors probe a rebound in the market soon.