As per a news reported in smh.com.au, it all goes wrong for the cryptocurrency wealth during Blockchain Week and the Consensus 2018 conference. Tom Lee, co-founder of Fundstrat Global Advisors and many bitcoin analysts and traders at the beginning predicted that it produces a bounce in bitcoin value. But, it has an adverse effect as there is a huge fall in value by $US45 billion ($56.6 billion) since May 11.
Even a performance by 46-year-old rapper Snoop Dogg, party on a yacht, a trio of rented Lamborghinis and gathering of thousands of cryptocurrency supporters has not been able to do much for the cryptocurrency promotion. All this happened in private, post-conference festivities, which are a part of the Blockchain Week.
Bitcoin, which is the most popular among the investors, decreased by 3.7 percent in its value this week and reached $US8,117.43. Arthur Hayes, executive in the cryptocurrency exchange and his firm, who rented the Lamborghinis, also predicted a rise in the value of bitcoin up to $US50,000 by year-end.
Blockchain conference that held last year between May 22 and 24 in New York, resulted in a boost in bitcoin price by 69 percent and recorded another 138 percent increase, even two months after the conference, according to cnbc.com.
Lee said, the Consensus was a huge success as it was able to bring together thousands of quality people from all around the world, which is important for this industry. However, with increasing number of attendees, it also increases the number of decision makers.
In a note written on Friday, Lee said, “While there was not a consensus bump, our conviction on cryptocurrencies strengthened during the conference.”
He also said that he’s very excited about the increase in the number of the big investors, who are willing to invest in cryptocurrency. The increasing number of institutional investors leads to rise in the value of different coins. However, he also remains worried that uncertain regulatory oversight could lead to some more fear in the market and keep the prices down for some time.
The drop in the prices of digital assets isn’t that high this week but the failure of the Blockchain week adds to the statement given by the people who are against cryptocurrency. They suggest that most people who are willing to invest in cryptocurrency, have already entered the market and no new investors can come in now. Their statements could be true because a lot of casual investors have already exited the markets, taking away whatever gains they could make.
On the other hand, crypto hopefuls have said that there are lots of investors, who are willing to invest in the digital assets besides the regulations in the US. Many Wall Street professionals have marked it as a dangerous bubble. Warren Buffet, CEO of Berkshire Hathaway, and legendary investor termed bitcoin as a “rat poison squared”
Sunny Lu, one of the conference speakers and the chief executive officer of blockchain-based logistics company VeChain Tech said, “This week’s losses may have been the result of unmet expectations surrounding Consensus 2018”.
According to him the quality of the projects and speakers was up to the level he expected and said, “I guess people just got disappointed”.
The extreme volatility and the instability of the cryptocurrency market is driving people out.
