Cryptocurrencies in 2018: What growth to expect?June 10, 2018
Despite the current drop of crypto coins, which continues from the beginning of this year, analysts are confident in the speedy growth of the digital coins and the market recovery. The most encouraging predictions are based on the fact that important updates will take place in the networks of many altcoins in summer. Such news will stir the investors and make them invest their own savings in the most promising cryptocurrencies. The market will receive the long-awaited volumes needed to break down the downtrend and break through important resistance levels.
However, there are analysts who are convinced of the opposite. In their opinion, the uncertain situation with state regulators is the main problem of the cryptocurrency community. Therefore, until the authorities resolve this issue, it is premature to talk about rapid growth. May Consensus 2018 сonference throw oil on that bonfire, after which many expected new price records. Just remind you, that in recent years, this event was a powerful catalyst for the growth of cryptocurrency rates. But, despite the unrealized prediction, the community is confident in a favorable outcome and the recovery of the market this summer.
Cryptocurrencies 2018: the current situation
Since the beginning of 2018, the leading experts on television and in various media have been talking about the ultramundane cost of Bitcoin in the near future. A well-known entrepreneur and crypto enthusiast John McAfee recently published an encouraging outlook on the price of BTC.
“By the end of 2017, I predicted a Bitcoin rate at $ 5000, but we saw it at around $ 20,000. This means that the cryptocurrency is growing much faster than the traditional assets. I believe that in 2020 Bitcoin will cost 1 million dollars. “
Not all investors and traders share the enthusiasm of John McAfee. There are more than 1600 coins existing now. Each of them offers its own ideas, which, according to the developers, are important and paramount in the modern world. Experience has shown that many of these projects fall apart at the initial stage, they are not surviving even for a couple of months. ICO go bankrupt, and the founders of the platforms hide in an unknown direction, taking the collected money. The investors are now skeptical about cryptocurrencies and the possibilities of the digital economy. The presence of a huge army of swindlers in this industry repels not only new but old players.
Need to mention, that today the trading volumes in the market reached the minimums of 2018. The current situation is the main reason for low rates of cryptocurrencies.
Cryptocurrency rates are highly influenced by the news publications. The negative reports have often become catalysts for reducing the cost of Bitcoin. This news include:
- crypto exchanges attacks;
- malfunction of electronic wallets;
- prohibition of cryptocurrency use in different countries.
At the end of May there was an information that EOS developers intentionally manipulated the cost of Ethereum. As a result, the ETH course fell. If this event generates an interest of the regulators in the near future, there will be legal proceedings that will lead to not the most pleasant news and badly affect the future of the cryptocurrency. Also, we need to remember about the serious influence of Bitcoin on other assets. If the BTC falls, the other altcoins repeat its movement.
Recently, the experienced traders have started talking about the speculative attacks by major players on exchanges. The so-called whales, who have a significant balance in the cryptocurrency equivalent, put pressure on the cost of Bitcoin. Making a purchase or sale on the trading platform with large volumes, they affect the further development of digital coin rates. Many traders have adapted to this phenomenon and now monitor the movement of funds on the largest BTC wallets in order to avoid force majeure situations.
Still the talk about the arrival of institutional investors has not abated. The analysts believe that the arrival of such players will allow the market to receive a new wave of growth. However, due to the lack of clear rules and regulations, they still don’t hasten to invest their own money.
Today the market needs the volumes. Large players took a wait-and-see position regarding the emergence of new laws. In summer, the countries of G20 will offer programs for cryptocurrency regulations. The experts believe there are no reasons for unrest, the introduction of new rules will provide the necessary guarantee to institutional investors and will attract additional capital. Therefore, this summer may be the starting point for the growth of the cryptocurrencies and the repetition of the price highs in 2018.