Bitcoin Markets Might Be Flat, But The Bears Can’t Stop Crypto Loans

It’s no secret that we are in the middle of a bear market. During this, the bears are holding their cryptos and keeping them to themselves, hardly surprising given that the top cryptocurrencies are riding super low prices at the moment. Generally speaking, bear markets refer to negative price movements, cryptos can’t rack up any value as nobody is really spending money on them, so it becomes a bit of a flat investment.

The bear market impacts other aspects of the industry too, from cryptocurrency mining to exchanges. Mining companies are losing money and exchanges are starting to struggle as a result of a decreased demand for their services. We should note that this will not last forever. Cryptocurrency is likely to recover and the bulls are due to return. We just don’t know when this will happen, or to what scale it will happen either.

One industry that seems to not have experienced any negative impact from the bear market of late is that of the crypto loans industry, according to BTCManager.

Genesis Global Trading are once such cryptocurrency lending company that have recently published a report that shows just how successful they have been in the final quarter of 2018, during which period the markets saw a number of consecutive slumps.

According to BTCManager:

“On January 30, Genesis Global Trading published its “Digital Asset Lending Snapshot“ in which it states that its loan originations have more than doubled in size in the fourth quarter of 2018 from $500 million to a total of $1.113 billion. The crypto lending company attributes the surge in borrowing to new crypto hedge funds and trading housing utilizing “spot” borrow.”

The CEO of Genesis, Michael Moro has spoken out about the recent successes seen by Genesis:

“We are very pleased with the strong growth of the lending business and continue to believe that digital asset lending will play an important role in developing this ecosystem. We are committed to investing in this business and expanding globally in 2019.”

It seems that even in a falling cryptocurrency market, crypto lending is still a very attractive prospect. I can see why crypto lending is easy to manage and can also be arranged quickly. The actual price of Bitcoin and other currencies shouldn’t really impact the types of loans that are given out, therefore these findings are hardly a surprise. Overall though, it’s pretty positive to see a branch of the crypto industry still flourishing during the current bear market.