Cryptocurrencies’ price is declining — Events that could pump up the cryptocurrency price

3개월 전

Dealing with the cryptocurrencies ‘ pump & dump situation every day is really hard for traders. High expectations of cryptocurrency lead many traders to invest in the crypto market. Cryptocurrency markets uncertain behaviour makes traders earn money and also lose money. If I were an expert in reading charts, I would have explained how the price fluctuations of cryptocurrencies affect traders.

As a naive analyzer, I could only explain that the crypto market has been falling for the past seven days. It was an event that pumped the crypto market while cryptocurrency prices touched the lowest bar of three months. The experts had a number of reasons for the sudden price acceleration in the crypto market. Some said China’s positive stand on blockchain and cryptocurrency, and some said Bakkt’s contract value could be the cause of the entire market. Still, there was no obvious reason anyone could give crypto price movements for that upheaval.

However, the upward price movement could not have crossed the $10,000 limit for bitcoin alone, and prices were gradually declining from the beginning of the month. Other cryptocurrencies followed the bitcoin footsteps. Now that the situation is getting worse, prices have not reflected any high-level scenario. For Bitcoin, the price is about to be $7,500 for writing timing.

Let’s take a look at the current coin market cap scenario:

If you noticed then you could see that almost 90% of the top volume coins are watching the price fall. Meanwhile, the only tether shows a plummet price graph. So, is there any way that the price of cryptocurrencies is going to rise and stay a little bit longer? The price fluctuations of cryptocurrencies are acting through different events. Some show positive results, some show negative status. But what might be the possible reasons for pumping up the price of the cryptocurrencies?

Involvement of giant industries in crypto projects:

Industries such as Facebook, PayPal, JP Morgan, Goldman Sachs, Oracle Corporation, Alibaba Holding Group, Nestle, IBM, Prudential, etc. are interested in blockchain collaboration. Aside from these major companies, many small businesses are collaborating with the crypto industries. These crypto revolutions with major industries are attracting the attention of traders on the market. This could be a significant reason for the price pump of the crypto industry.

Bitcoin Halving:

Believe it or not many experts see that bitcoin is halving by 2020 is going to be the turning point for the price of the crypto market. Experts are looking forward to another Bull Run next year. But will that e be enough? Is bitcoin halving affecting only the price of bitcoin or the entire market? You may have noticed that whenever the price of Bitcoin decreases, many cryptocurrencies prices are coping with the pattern. Bitcoin coin price somehow affects the whole market scenario. It is also noted that some coins are acting in contrast to Bitcoin’s price fluctuation status. So, when bitcoin rewards are reduced by 50% from the current rate, the crypto market will be strongly influenced by the event. Whether or not the event is linked to other cryptocurrencies but the market can see a huge profit from cryptocurrencies.

Regulation Policies:

Cryptocurrencies have become the most complex technology to bind them to certain legislative norms. It’s been 10 years since the first digital currency debuted on the market, and after that many cryptocurrencies came and went. Now we have witnessed a lot of developments in blockchain technology and a lot more to come.

Governments are still struggling to study and create the perfect basic law for cryptocurrencies. After many cases of money laundering terror funding reported, people are afraid to invest in it. While governments are planning to stop illicit services in the crypto web, dark markets are gradually rising. That’s why the legal support of governments for the crypto world has become quite important because it brings trust to the cryptocurrencies system. Although governments are at their initial stage of finding a regulatory solution, they will soon find a way forward.

Returning trust to the blockchain and crypto world is possible if the government ensures its safety and security and without proper law, it is not possible now. When this new technology comes under government law, people will move to this market. The Cryptocurrency market will see a price increase and capitalization.

Stability in the cryptocurrency market:

The unregulated and unbalanced nature of the cryptocurrency market is still a major concern. From any political, technical or geographical event, the cryptocurrency market is a highly effective platform. Fluctuation rate is higher than any existing cryptocurrency trading platform. This unstable nature has two sides to it. If the price went up unexpectedly, you could have earned the maximum return on your investment. If the price falls even more dramatically and unexpectedly, you might lose your money as well. Loss and the gain amount will be high enough if your investment is large.

For example, within one week at the time of writing, Bitcoin lost almost $1,600 in value. That unstable nature of the crypt market still creates fear within people’s minds. However, new approaches like gold-backed, fiat-backed cryptocurrencies show a more stable nature. This is the solution to market fluctuations.

Trade War & economic condition:

American-China trade war is still going on resulting economic slowdown. That could proceed to a global recession. Do you remember when the recession hits in the USA market last? Yes, in 2009. That was the year when the first cryptocurrency, Bitcoin arrived. That was called the ultimate solution for saving assets under blockchain technology. Now, after two halvings and having scarce value Bitcoin market capitalization counts in billions.

If a global recession could bring revolutionary changes to the international market, this trade war could be the reason for the price rise of cryptocurrencies. Somehow, with new technology, the recession and economic imbalance could not have had an impact on the digital platform. If this trade war could be the reason for any turbulence in the global economy to come, cryptocurrencies could be one of the best solutions for asset savings.

Apart from the above scenarios, there are multiple possibilities that could lead to an increase in the price of the cryptocurrencies. Still not sure what kind of event could pump the crypto market. The five reasons for the significant event that could boost the cryptocurrency market to the highest level. Now, China is taking the initiative in blockchain technology for baking China’s new government-approved cryptocurrency and similarly many countries looking for this is a solution for the futures trading platform.

However, any of the above justifications could give rise to mass adoption, or a reason would come out of the box. All we can do is see the opportunity for the future cryptocurrency market. The Cryptomarket is undetermined and any event can create upheavals in cryptocurrency prices.

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