The last weeks for the crypto market were relatively calm and did not show sharp price hikes, high or low achievements. Despite this, experienced traders report that this will not always happen and there are a number of serious events ahead.
Compare the situation with the current situation in the stock markets . This will give a general understanding of the relationship with the cryptocurrency market and the fact that they do not always move in the same direction. In connection with the sale of world and US stocks, large falls were recorded and for a long time the markets were in the red zone . The S & P index of the 500 largest companies fell by more than 10% in a month, and the Dow Jones index fell by 8.7% from October 3, when the absolute price record was recorded. It is likely that further waves of decline will follow. Those factors that significantly influenced the current fall continue to affect stock markets . Among the negative factors are the following. In connection withoil sanctions , which were imposed on Iran, Saudi Arabia plans to further increase the volume of raw materials . The trade war between Donald Trump and China continues . Such factors are now the overwhelming amount. At the same time the market cryptocurrency relatively quiet and no application of sanctions and trade wars have absolutely no impact on the charts Bitcoin and altkoinov significantly. Those who have long been in this market understand that this does not last long and very soon we should expect a serious movement.
Another confirmation that key cryptomonettes are not the most volatile asset is the results of a study comparing how the value of stocks and digital assets in the stock market changed. Over the last 365 bitcoin on volatility is between Facebook , Apple and Alphabet . In this case, the second capitalization coin Ethereum comparable with the corporation AMD’s , one of the leaders in the production of cards.
What can affect the rise and fall of cryptocurrency in the near future?
A factor that has previously influenced cryptoactives and can do it again – the destruction of 500 million Tether that were placed on the Bitfinexcryptocurrency exchange . In “steyblkoina” side has repeatedly made information attacks , which undermine the credibility of the project . That is why such actions are aimed at restoring loyalty from market participants. Why is the hype around Tether so weighty? With each release of a new party steyblkoinov, Bitcoin is growing in price, but the whole stretches him kriptorynok. The graph below clearly demonstrates this dependence. The vertical lines mark the release times of the Tether. Sending to the store as much of the huge amount of coins as announced, without the possibility of return, will be held for the first time . Therefore, at the moment it is difficult to predict how the cryptocurrency market will react to such events.
On October 26, bitcoin futures were exported on CME. After that, the first cryptocurrency dropped by about $ 100 in price, but perhaps a further decrease against the background of this event. In contrast, there are a number of positive factors that can contribute to a positive dynamic of development. One of them is a meeting of SEC commissioners (US Securities Commission) with experts from investment companies who have submitted an application to create an investment tool Bitcoin ETF , which will be completely new for financial markets. Although it was just a discussion meeting, the likelihood of accepting an application is very high.. First of all, Kara Stein, the regulator’s commissar, noted in a recent interview that she wanted to familiarize herself with the possibilities for ensuring liquidity of trading and asset storage, especially in the conditions of instability that are characteristic of the cryptocurrency market . The likelihood of this event is enhanced by the fact that Coinbase , a large stock exchange, has received a license in the state of New York for the custody and accounting of client funds. This is a small but significant step towards the full legalization of cryptoactive assets and work with them .
Another factor that can positively influence the dynamics of the crypto market is the launch of transactions with cryptocurrency futures on the Bakkt site . The launch is scheduled for December 12th. If this activity is also approved by the CFTC (Commodity Futures Trading Commission), then the probability of a serious rise in the price of many top cryptocurrencies is high . The platform can attract for trade including institutional investors who have expressed interest in this market. One of them is Goldman Sachs Bank .
There is another very good news for the crypto bank. SEC said that in addition to regulating the ICO will support start-ups and assist them in legal matters . To do this, plan their placement on a single site FinHub . Such information can be regarded as one of the key for the entire year. Given the fact that not so long ago ICO was regarded as fraudulent actions to raise funds, such a dynamic of events is developing in favor of the crypto market. This is a great opportunity to interact and receive competent legal support from the regulators themselves.
Analyzing all of the above, the prospects for the growth of the cryptocurrency market are very high . At the same time, do not forget about technical analysis, look at the graphs and identify clear signals. With medium and long-term purchases, it is better to keep the main deposit outside the market at the moment.
Summing up, it should be noted that the cryptocurrency market is already relatively formed and the actions on it do not seem so chaotic and unpredictable as 5 years ago. More serious stability, in comparison with the stock markets, which was considered in the article is not an isolated case. There were already moments when the crypto-market behaved much calmer and reacted to various events in the world without serious drawdowns. After analyzing the longer segments in time, it is possible to identify the key factors that influence this market, and that with a minimum degree of probability it will be influenced by it. The main thing here – “keep your finger on the pulse . “