Research by PwC shows that the cryptocurrency industry failed to deliver the expected performance last year. Aside from not being able to deliver the expected performance last year, it is thought that the crypto money sector may be adversely affected by the Coronavirus this year. What Happened Last Year? “Institutional investors”. We have been using this term for years, they use it. It is said that once the institutional investors enter the market, the price of Bitcoin will be on the flight, so to speak, it will “go to the moon”. However, according to research by PwC, the crypto money sector did not show the expected performance in terms of institutional investors last year. According to research by PwC, the total amount of investment collected in the crypto money sector last year was below expected. While the $ 3.72 billion investment was collected in the cryptocurrency sector in 2018, this number dropped to $ 2.24 billion in 2019, indicating a huge decline of 40%. This is not the only issue that the cryptocurrency industry cannot meet expectations. It seems that there is also a decrease in the mergers and acquisitions agreements in the sector. As it is known, “merger” merges two companies; “Acquisition” means that a company buys another company. Although merger and acquisition agreements may result in negative results from time to time, sometimes they can be beneficial for both companies. In addition, these agreements are closely followed by financial institutions, which brings institutionalism. The total value of the mergers and acquisitions agreements made in the crypto money sector in 2018 was $ 1.9 billion. But in 2019, this number was down by 76%, and the total value of the deals fell to $ 451 million. PwC says this on the subject: “Bitcoin price started to rise in the second and third quarters of 2019. Meanwhile, people started to be more interested in cryptocurrencies. But there was no increase in the amount of capital entering the sector. ” According to this research, countries outside the US started to play a more active role in the cryptocurrency sector in 2019. Perhaps this is the only positive thing that can be drawn from this research. 55% of the investments collected in 2018 came from the USA. This number dropped to 48% in 2019. The distribution among other regions is as follows: 29% Asia Pacific 22% of Europe, Middle East and Africa Prospects for 2020 The total number of coronavirus cases worldwide is approaching 1.5 million. Meanwhile, the global economy continues to suffer a heavy blow. According to the research of PwC, Coronavirus can also adversely affect the crypto money world. “Does the crypto money market follow global markets or not?” The question has been debated for a long time. Some argue that cryptocurrencies are independent of the global market, that is, developments in the world do not directly affect Bitcoin price, while others argue the opposite. Henri Arslanian, one of PwC’s cryptocurrency experts, says that cryptocurrencies may be “affected” by developments in the world, although there is no definitive comment: “The crypto money industry is not immune to the negative developments in the world. We can see the negative effects of these developments in this year’s crypto investments and merger / acquisition agreements. ”
