It’s not yet the end of the volatility of the crypto market, claimed SFOX in a Forbes article. Analysts expect it will continue for some time in the new year, albeit not as intensely. Using the data compiled from eight major exchanges and liquidity providers, SFOX provides us with some insights, like that infrastructure development and community engagement will likely yield positive results despite the bear market.
“The cryptocurrency community has been lacking the data that serious investors need to put market movements into context and make informed decisions,” said Danny Kim, Head of Growth at SFOX. “We hope that by breaking down the key drivers for 2018, and continuing to provide these analyses every month, we can contribute to the ongoing maturation of the crypto industry that we saw throughout 2018.”
According to SFOX, volatility increased in three phases during 2018. Key drivers during the last phase were the bitcoin cash fork and SEC settlements. Others include crypto theft, Facebook and China’s decisions to lessen individual exposure to crypto, and accusations of bitcoin price manipulation.
Kim said the advancement of infrastructure was “the most encouraging trend of 2018” as it will provide substantial support to the industry. Although the volatility should lower, there are still factors that can affect it, he said.