The cryptocurrency market received yet another jolt which temporarily saw 19 of the top 20 coins in decline. The fall which came after a week of relative stability, brought the total market cap for the digital currency industry to monthly low levels.
It appears that bitcoin can just not catch a break. The cryptocurrency leader has made numerous attempts to climb up over the $7,000 threshold, coming close on July 8th. However, it has been stuck below that point for an extended period of time.
With other coins moving in a similar pattern, the total market cap of the cryptocurrency space fell by about $27 billion from an intraweek high on July 8th.
Many investors have grown jaded of crypto business and view it as employing the “greater fool theory,” meaning holding assets under the belief there will always be someone willing to pay a higher price for them.
“Betting on a cryptocurrency is betting that someone is going to pay you more for the same thing that you bought without any cash flow generation,”
Where is the money flowing?
A lot of money has already been invested in ‘legal green’. Canada is on the verge of legalization for recreational use, a move that has seen stocks in the industrial boom. The mere likelihood of legalization has seen its index go up by 71% early this year from November last year.
“Green” is about to take up a whole new meaning with expectations running high but finding the right company remains a huge challenge. Even now when there is plenty of opportunity for investors both locally and abroad, analysts are still wary and are warning against risky plays.
However, in amongst all the risks and changes in market trends, there are still companies that will definitely profit from the biggest market trend this year.