Where Is Crypto Heading?
In December of 2020, Bitcoin had experienced steady growth and reached a new all-time high of $20000, breaking all the previous records. But nevertheless, the cryptocurrency market has always been very wild.
Let us just look at the market of 2018. In the year 2018, the highest level bitcoin reached was $19783, and it closed on $13,500. At the same time, Ethereum also was not faring well in the market. It fell from $1900 to just $91 and then again rose up to $450 by the end of 2020.
The growing interest of Institutional investors
Institutional investors are showing great interest in crypto coins even though individual investors have slowed down their investment. But the positive point is that these institutional investors singlehandedly trade in a much bigger volume than the individual investors. This way, the cryptocurrency market can sustain itself even if individual investors stop their investments or trading in the crypto market. Also, after getting placed in any exchange, crypto will gain a huge boost in its overall value and reputation as well.
Growing Lead of Stablecoins
After the Stablecoins have been introduced in the market, they are slowly trying to take over the crypto coin market. Stablecoins are crypto coins that are directly linked to the fiat currencies and act against the collateral decline of crypto coins’ prices. Tether (USDT) is one such stablecoin and one of the earliest ones at that. Other stable coins have also entered the market and are trying to take over its dominance.
Crypto enthusiasts and investors have tried to attach a digital coin ETF that is available to the conventional investors in the United States. United States Securities and Exchange Commission, better known as SEC, has already declined and delayed Bitcoin ETF several times. Some experts suggest that if the Bitcoin ETF gets approved, then it will open up a massive possibility in terms of investment and trading directly. Surely some risk will be associated with it.
More to come?
As wild and rapidly changing the crypto market is, it is difficult for sure to say which currency will lead or top overnight. Still, nevertheless, it can be indeed said that the crypto coins and their market are not going to go down anytime soon for sure. Because the underlying technology these cryptocurrencies use is the Blockchain technology which has expanded its root in the world of crypto coins and technology at the same time. But the government will try their best to control and regulate cryptocurrencies at their best.