With the recent run in the crypto markets, a lot of interest and money is returning. News coverage has started to return, major financial companies are announcing the hiring of "cryptocurrency experts", and once again, those of us hodling are starting to feel like financial geniuses. But what caused this surge? How long will it hold? Is this a sign of a greater upward move? Or are we simply looking at a giant pump and dump that will have longs in a few weeks only being able to afford the matchbox version of their favorite Lamborghini.
With Ethereum failing to move above the ascending trend line started in June of 2107 it had many people worried on Wednesday(4/25/2018) that this was simply just a small bounce that would soon see the market's prices return to their mid-March lows, erasing the spectacular gains made in the last 2 weeks. But while it did not break past $715, it does appear that strong support has been set right around $600, giving hope to longs that this is but a small correction on a much larger upward move. As of writing this article, Ethereum is holding around the $630 level, giving fuel to the idea that in the next couple of days it could once again retest the ascending trend and possibly break higher.
A trend that is making people believe this long winter was simply a market correction on a much larger upward move is the recent hiring of "cryptocurrency experts" by major financial firms. In the last few weeks, several firms have announced that they are bringing these experts on board to be able to advise their clients on the best way to benefit from the crypto markets. On Monday of this week, Goldman Sachs announced it had made its first hire in the space, bringing on Justin Schmidt to help advise the ever-growing number of clients they have who are showing interest in investing in crypto.
"In response to client interest in various digital products, we are exploring how best to serve them in the space," Goldman Sachs spokeswoman Tiffany Galvin-Cohen said in a statement.
"At this point, we have not reached a conclusion on the scope of our digital asset offering," she said
Goldman is just the latest in a long line of financial firms who are quietly shopping for the brightest talent in cryptocurrency traders and experts. They follow firms like Chicago's DRW Holdings, Morgan Stanley, and Fannie Mae.
With all of this new activity comes the news coverage, highlighting traders and people involved in the tech space (most of which who are current holders of one cryptocurrency or another). I believe the real opinions that matter when talking about real, long-term opportunity for cryptocurrency, are those in charge of major financial institutions who are beginning to come around to the idea that crypto may be something they need to start taking seriously. I'm not saying that there is anything wrong with the opinions of those champions of crypto, like Tim Draper, The Winklevoss Twins, or John McAfee, Or even that they are right or wrong, I’m saying that until there is major institutional acceptance we will not see the true value of this market come to light.
Luckily in recent weeks, we have begun to see a slew of financial firm CEO's and managers start to come to the side of cryptocurrency. Adena Friedman, CEO of Nasdaq, said in a recent interview with CNBC "I believe that digital currencies will continue to persist...it's just a matter of how long it will take for that space to mature, Once you look at it and say, 'do we want to provide a regulated market for this?' Certainly, Nasdaq would consider it.". This news comes along with several other very well known wealth management CEO's such as George Soros of Soros Fund Management, Ziad Abdelnou of Blackhawk Partners, and Steve Goldberg of Venrock have now all expressed interest in entering the market. Bringing with them the billions of dollars that they manage and the millions of people who attempt to imitate their trading patterns and habits.
I believe we are just now starting to see the potential of where cryptocurrency can go. With positive movement in the market, major news outlets reporting something besides the bloodbath that has taken place over the last 3 months, and major financial institutions beginning to show interest and some already entering the markets, cryptocurrency appears to be just getting started. The pop we saw in the market back in November and December of 2017, I believe was just the first real showing of where this market is heading. While it was followed by a strong correction, these were people who were only seeing it as a short-term solution for making money, not for what it really is, and new and emerging global financial infrastructure.