When the crypto market will go up
This article discusses the current data and figures of the biggest crypto coins, evaluating their market gains and potentials. In the later section, comments and expectations of industry experts have been detailed to examine the future prospects of cryptocurrencies.
The cryptocurrency market suffered a major crash on July 20 as leading crypto tokens dropped to unimaginable lows. Bitcoin, as well as Ethereum, along with many other leading cryptocurrencies, saw their valuation crashing hard enough to hit crypto traders and investors.
The lows seem to be a sudden blow after cryptocurrencies enjoyed record-breaking highs in April, whereas the same coins started dropping in May, June and July. The fall in Bitcoin, however, was sparked by Tesla announcing that it would no longer accept BTC in its payment stream. This decision came three months after Tesla bought $1.5b of the cryptocurrency.
Elon Musk, Tesla CEO, took to Twitter to say that it was taking a U-turn on its policy due to environmental concerns relating to Bitcoin’s mining procedure. However, the impact of this decision was also seen in other major cryptocurrencies like Binance Coin, Ethereum, XRP, Dogecoin and Litecoin. All of these became the worst affected. Ethereum saw a 35.56 per cent decline, Dogecoin dropped by 35.12 per cent, Binance Coin was down 45.20 per cent, Litecoin -44.55 per cent and Uniswap was at -45.42 per cent.
Weeks later, when the market was indicating recovery, Bitcoin lost 10.33 per cent, Cardano plummeted by 13.15 per cent, Ethereum dropped by 11.82 per cent, Dogecoin lost 12.32 per cent, and XRP lost 11.66 per cent. But will the cryptocurrencies rise upwards is the question on every investor’s lips. There is a wide range of answers for this based on findings, tracking and data by crypto traders, some of which are discussed below.
In the last one year, Bitcoin has witnessed a surge of 197.03%, despite the enormous crashes on 19 May and 8 June. On July 31, Bitcoin saw a rare 10-day winning streak as its price hit the $42K ceiling. This suggests that the volatility of crypto coins are so high that any investor must be prepared to lose all their money. Co-founder of global payment network Mercury, Alexander Vasiliev, had said to Independent about the current fall rate in Bitcoins that it is still likely to witness a support at $40,000 if the selling continues. If BTC can overcome this big onslaught, it would create an all-time high of $70,000 in the long term.
Thomson Reuters technology correspondent and futurist Joseph Raczynski has predicted that cryptocurrencies are the future of money. He said that some countries would even leverage Bitcoin as their primary currency and that it has prospects of overtaking the dollar by the year 2025 with a value of $150,000. He has also remarked that with ease of transfer, cryptocurrencies would soon compel nations to move to a ‘bankless’ model.
One can only see how cryptocurrencies are faring among the global marketplace to understand that the crypto market is yet to grow high up. The EU has already proposed multi-million funding for digital currency, while countries like the US, Canada, and others are suggesting countries should put in place legal frameworks in another four or five years relating to cryptocurrencies owing to the mainstreaming of its usage.
More recently, El Salvador has adopted BTC as legal tender along with the U.S. dollar, calling it an “economic experiment,” while several Central and South American nations have suggested they would also carry on the same economic experimentation to decrease their dependence on the US dollar. Kazakhstan has initiated a pilot project from Astana, its financial hub, to assess the potentials of a digital payment system.