The cryptocurrency market is the most fluctuating one. The market rates can soar up unexpectedly within a few hours and also can drop down considerably. It is evident from the history that investing in the cryptocurrency world might be a good as well as a bad option at the same time. It completely depends on a number of market factors affecting the price and hence the cryptocurrencies are not to be blamed completely. The cryptocurrency market has been experiencing a bearish trend from past one month. This might be due to multiple reasons. FUD and major players pulling off from their investment are sighted to be two of the main reasons.
However, the most of the cryptocurrencies have broken their resistance barrier and are portraying the better side to the investors.
Thomas Lee, head and co-founder at Fundstrat Global Advisors also agreed on the fact that the cryptocurrency world would be experiencing a lot of internal resistance and traditional hurdles on its way and hence he re-predicted the price of Bitcoin by the end of 2019 as $25,000 which he earlier had predicted to be around $36,000.
He furthermore explained that the prices can also be expected to go up. He told that his forecast was purely based on two factors affecting the Bitcoin price. The attraction of cryptocurrency community towards the centralized space as well as the increase in the number of users and investors in the field has left a positive response on the market.
According to another statistics, the Bitcoin trading volume has also been adversely affected. The trading volume has dropped by almost four times since late 2017 and until today from $4 bln to almost $1 bln today.
However, the long-term investors still seem to have a belief and expectation from the cryptocurrency market. According to a report submitted by a Blockchain analysis firm, Chainalysis is showing that the number of Bitcoins being held by the long-term investors has almost equaled to the number to the Bitcoins held by the short-term investors.
Ethereum has shown a bullish trend by recovering it’s last week’s dip of about $567 to the current value being $575 hovering around the $600 mark. However, cryptocurrencies like Tether and Ethereum classic have shown an uptrend by an increase of over 0.55% and 0.58% respectively.
At the beginning of the year 2018, the speculators had speculated the market price for Bitcoin by the end of the year. Anyhow they didn’t manage to revise their conclusion on observing the snow momentum that the currency gained due to a number of drop falls.
The investors are probably so optimistic because they are expecting the entry of the institutional investors into the market. A number of major institutions are strengthening their base in order to influx huge amounts of money. Susquehanna International Group, an American global trading, and a technological firm are one of the major players preparing itself to open a Bitcoin futures trading in order to facilitate it’s small 500 clients.
A number of Bitcoin price predictors in the market had predicted the higher price for Bitcoin by the end of 2018 but within and duration of past few days have reduced their prediction after they felt that the Bitcoin price had gained low momentum.
The Bitcoin price prediction site, Finder had come up with a prediction of $33000 initially but after it weighted the opinions of the experts in the field last week it updated it’s prediction to $14,638. Another stock analysis company named, Trefis also lowered its prediction from $15,000 to $12,000.
The cryptocurrency investments are highly risky because the market is very volatile due to its smaller market size. However, once the market gains a lot of active users and investors the market will gain some kind of stability and then the price predictions of the Bitcoin market would be more accurate. Also the belief that investors have in the cryptocurrency that the price will surely increase might be one of the reasons for the spike in the cryptocurrency prices because after all the cryptocurrency prices depend on people’s belief itself.
After Binance's announcement on June 14, 2019, that its U.S. customers will no longer be able to trade on Binance.com…