Cryptocurrency market on ‘the brink of implosion’

Investors should brace for an imminent collapse in the entire cryptocurrency market following a steep decline in the value of Bitcoin over the last year, a new study from Juniper Research has warned.


Friday 12

Cryptocurrency market on ‘the brink of implosion’

In a report published on Monday, the firm highlighted how the price of Bitcoin had fallen to just $6,594 (£4,994) – one-third of the peak value recorded back in December last year.


Transactions had plummeted from an average of 360,000 each day in late 2017 to just 230,000 last month, with values down from more than $3.7bn to less than $670m.


This is despite Brexit uncertainty, ongoing trade disputes between the US and China, and weakness among a number of leading fiat currencies all creating a favourable environment for Bitcoin.


Juniper Research said failure to make gains in these circumstances, and the prospect of closer regulatory scrutiny, had cast doubt on the future of the cryptocurrency.


Moreover, a ban on social media sites like Google and Twitter, and the curtailing of credit card purchases by many financial institutions, are both expected to lead to a further fall in demand.


“While the value of cryptocurrencies will remain high for as long as there are individuals who are willing to pay inflated prices, it appears the base of such individuals is in decline,” Juniper said.


“In short, given our concerns around both the innate valuation of Bitcoin, and of the operating practises of many exchanges, we feel that the industry is on the brink of an implosion.”


The firm also said bodies like the International Monetary Fund would likely demand more stringent licensing in the future, or possibly even prohibit trading all together.


Meanwhile, one of the few economists to predict the 2008 financial crash yesterday warned US politicians that Bitcoin was the “mother of all scams.”


Speaking at a congressional hearing, New York University professor Nouriel Roubini said: “No asset class in human history has ever experienced such a rapid boom and total utter bust and implosion.


“The entire cryptocurrency land has now gone into a crypto-apocalypse as the mother and father of all bubbles has now gone bust.”


Most popular

  1. Insurers’ automation spending to more than treble in five years

    Insurance firms will spend more than three times as much on automation in five years than they do today, according to an analysis by Juniper Research.

    18 July 2019

  2. FinTech is the ‘new normal’

    More than half of banking and finance customers use FinTech products and services, according to a worldwide poll by the deVere Group.


    03 July 2019

  3. Technology threatens to replace one-fifth of jobs

    One in five jobs are at risk of being replaced by artificial intelligence (AI) and automation, a global survey of over 3,600 IT leaders by KPMG and Harvey Nash has uncovered.

    FRIDAY 14

    14 June 2019

White paper

  • Quarterly InsurTech Briefing Q1 2017

    Why InsurTech? A Pressured Insurance Value Chain

    By Andrew Sagon, Andrew Johnston and Matthew Wong

    InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.



  • Insurance big data – float like a butterfly, sting like a bee

    Nimbleness and agility will unlock potential

    By Elinor Friedman, Andrew Harley and Klayton Southwood

    Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.

    Download PDF

  • The new era of insurance analytics

    Driven by technology, toolkits and talent

    By Claudine Modlin and Graham Wright

    Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.

    Download PDF

  • How can we manage the dynamic nature of cyber-risk?

    Risk transfer is part of a comprehensive solution

    By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood

    Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.

    Whitepaper Form