In the near future, transactions related to the circulation of digital currency and the circulation of digital rights will fall into the zone of special attention. By default, credit institutions will have to evaluate them as potentially suspicious.
Despite the fact that cryptocurrencies are not banned in most countries, many Central Banks and regulators are working against them by other means. It’s understandable: crypto in general are undermining central authorities as the issuers of value.
It’s unlikely that ‘crypto winter’ will return soon
The policy of regulators clearly does not contribute to increasing the attractiveness of ‘digital gold’. And this is despite the fact that the global cryptocurrency market has just begun to recover from recent shocks. The crisis broke out in the first days of September, when investors around the world anxiously watched the rapid decline of crypto exchanges. The worst seems to be over, although the situation remains tense.
The change in cryptocurrency rates depends on many factors. Among the main ones, of course, are supply and demand. For example, the number of bitcoins is limited. The more investors want to buy them, respectively, the higher the purchase price will be. The permanent growth of miners’ costs also has an impact. All taken together, it moves the rates of cryptocurrencies up and down.
What influences the Bitcoin rate forecast
A drop in rates occurs when most investors, in order to fix profits or against the background of negative forecasts, begin to sell off their assets. If large players get rid of digital capital, then sharp changes in the exchange rate of the crypto are inevitable.
A negative scenario can be activated at any time, for example, a leak of information about the upcoming modernization of coins or increased activity of hackers. There are also economic and political factors. For example, investors are unnerved by rumours about the impending ban on the use of a particular cryptocurrency or the withdrawal of a large financial company from it.
An important role, of course, is played by unfavourable forecasts of experts, various frauds and shortcomings of the creators of the cryptocurrency, as well as the introduction of more competitive digital coins into circulation. In turn, speculators can also intentionally “play” with cryptocurrency rates, acting in their own interests. From this, the already unstable digital gold market periodically feverish.
That is why it is difficult to disagree with the assessment of the banks that any cryptocurrency is by definition a very risky asset that can unexpectedly collapse by 80%, and then skyrocket by almost 1000%. Compared to the stock market, indeed, the volatility of the cryptocurrency is order of magnitude higher.
Forecast for cryptocurrencies rate in general
The September “swing” was largely provoked by the tense situation around the bill on taxation of transactions with cryptocurrency being prepared in the United States. It is obvious that most other countries can take this document as a basis by reformatting national regulatory legal acts for it. However, no matter how strict the regulators on the ground are, a complete collapse is unlikely to happen. It is safe to say that “crypto-winter” will definitely not come in the foreseeable future.
Forecast for Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP)
It is appropriate to recall that the cryptocurrency market today is more dependent on three digital coins – Bitcoin, Ethereum and Ripple with occasional scams and bubbles. The first fiddle, of course, has historically been played by bitcoin. In recent weeks, its rate has been gradually recovering after a recent drop. The main intrigue is whether it will be possible to overcome the psychological threshold of $ 50 thousand. If the height is taken, then bitcoin may well be able to set new records.
Ethereum (ETH) price prediction: factors to watch for
Fundamental changes have recently taken place in the Ethereum blockchain, the largest altcoin by capitalization. The digital platform has become more convenient for users, has received options for scaling, the number of coins in circulation is now decreasing. It is quite possible that in the coming months, the favourable conditions created will lead to a noticeable increase in the price of the asset.
Ripple XRP is still under pressure: prediction is complicated by legal drama
But Ripple remains at a crossroads for now. His future fate depends on the outcome of the trial with the U.S. Securities and Exchange Commission (SEC). The scandal broke out at the end of 2020, after the American regulator accused the company of selling unregistered securities for about $ 1.3 billion under the guise of tokens. However, the probability that the conflict will still be resolved remains. In this case, the Ripple rate will be able to demonstrate growth.
It seems that prospects for investing in Binance tokens will open up in the near future. However, for most other cryptocurrencies, the risks of falling before the end of this year are quite high.
And yet, as mentioned above, our forecast is that a complete collapse of the digital gold market will not happen. At least because this asset has a lot of fans, including among influential international investors, whose interests regulators simply cannot ignore.
Some governments have initiated the process of legalizing digital gold, and somewhere it even managed to get an official status. At the same time, there are examples of another kind when central banks are strongly opposing the circulation of cryptocurrencies. China is the most radical example.
In a number of countries draft laws have been prepared obliging citizens to declare their cryptos – Bitcoin, Ethereum and Ripple. Those who do not voluntarily leave the digital shadow face fines. In particular, financial authorities are seriously considering the possibility of blocking accounts that are used for cryptocurrency transactions. The formation of a legal framework for the legalization of the work of crypto exchanges, multiplied by the pressure of supervisory authorities, may well scare off a significant part of potential investors. No less dangerous are the plans of the authorities to completely ban the use of digital gold and introduce criminal liability for violators.
If the development of events takes such a turn, then it will not seem enough to anyone. The account of those who will be left without savings overnight – digital and fiat money – will go to thousands.