What a rollercoaster of a ride it has been in the cryptocurrency space so far in 2018 with over 100 billion wiped off the value of cryptocurrencies. All the different cryptos have suffered heavily but things may be about to change in the coming weeks. In this article, I will talk about the different factors that are affecting the price and why we might be about to see another boom in the crypto market.
#1: Stock Market Crash
It is not just the crypto market that has crashed during 2018 but recently the world’s stock markets have suffered massive single day losses. This has been on the cards for a while due to all the cheap fake money printing by the Fed and other central banks. That money and not being used for good has inflated the stock market to record highs and any interest rate rises will see the bubble pop. With investors looking for safe havens, crypto is the perfect solution to this so it should help the price of cryptocurrency along with gold.
#2: USA Regulation
The tightening of regulation around the world has made the biggest impact on the price of crypto this year. China, South Korea, and India have all made big changes that have not been in favor of cryptocurrency. Many investors thought that the US would follow but in a recent meeting by the U.S. Senate Committee along with the head of the Securities and Exchange Commission and Commodity Futures Trading Commission went well. They all agreed that more regulation was needed but the crypto is here for good which is fantastic news for the market. It will also help to solve the problem of Bitcoin Wallet and others that are attached to banks with a credit card. Most services have been banned due to not knowing the regulation impacts so hopefully, this can be resolved in the near future.
#3: Risk Of Financial Collapse
We all know the crashes of all crashes is on its way, we just do not know when it is about to happen. There is a lot of nervous investors around the world and any bad news they are reacting instantly which is why we are seeing lots of flash crashes. If interest rates rise to combat inflation the pack of cards comes tumbling down and it is just a matter of when not if.
Conclusion
Investors these days have short-term memories and forget that at the start of the year in 2017 the price of Bitcoin was below $1,000. Even if it drops to $5,000 that is still a mammoth gain and the fact that it reached nearly $20,000 shows the possibility of the levels of returns it could make. Regulation is the key as if exchanges around the world become illegal along with cryptocurrency, it will create a dark underworld and completely collapse in value. Banks are making it extremely difficult to convert crypto to fiat but you can not blame them as they are all on their last legs trying to survive.
