Likelihood of Leading Cryptocurrency Rate Collapse
The rapid cryptocurrency promotion of the last year led to the fact that the bitcoin rate was quickly rising. It has reached its peak in the current year and the market has seen significant fluctuations exactly at this time.
Main Trends of 2018
The rapid growth is followed by a swift drop – and this law has not been repealed. Reaching 2000 dollars in price, bitcoin started losing its ground. This caused a new tide of distrust in cryptocurrencies. The reasons for such fluctuations are:
- Excessive overheat in the market. The rapid rate growth caused a fast buyout of assets but everybody started to get rid of cryptocurrencies when facing some problems.
- Trade games. The main people who influence the cryptocurrency rate are large players. Exactly they play games that then have an impact on the value.
- Market news. If resonance events often cause a drop, the local ones cause only changes. As for cryptocurrencies, politicians’ statements played a big role. They say about the readiness or, on the contrary, unwillingness to execute money transactions by means of digital assets.
- The funds are necessary to convert. This happens during the vacation and holiday period in those countries where a lot of cryptocurrency holders live.
After the winter “quake”, the value of bitcoin, Ethereum and other cryptocurrencies has become more stable. Experts do not expect fluctuations they saw several years ago. Now, the mining process itself is more complex, so there are no obvious preconditions for a drop. Only new bans or other destructive solutions aimed at restricting cryptocurrencies in the modern world can affect their rate.