Trends in the Crypto Industry for 2020–2023
When it comes to the cryptocurrency market, it seems that there are no accurate predictions. We know very little about a new kind of money. Bitcoin, the first currency, was launched in 2009, just 11 years ago, and now we have a multi-billion dollar currency market that appeared almost out of nowhere. Therefore, experts can predict the price of Bitcoin in 2025, which ranges from $1,000,000 to 0.0000001, and each prediction has a chance of coming true.
Of course, currency trading is not limited to Bitcoin: Ethereum, Monero, Litecoin, and other currencies account for almost half of the market. However, bitcoin reigns supreme in the world of currencies. Bitcoin is trending due to zero risk of inflation, and its compound annual growth rate (CAGR) is expected to be 3% between 2019 and 2024. As a result, any analysis and forecast from a Bitcoin perspective should be taken into account.
The cryptocurrency market operates on the same principles as other financial markets. Japanese candlesticks and other indicators, according to technical analysts, can be seen on the charts. Simply put, many market indicators reflect human behavior rather than the true cost of stocks. An experienced analyst can track and identify movement patterns on their own, as well as chart future changes.
Factors Affecting the Cryptocurrency Industry
Regardless of their relative importance, each of them is important. Furthermore, each of these factors has the potential to derail future expectations. Therefore, it is necessary to follow them to have a better understanding of the market. We have identified several important trends in the cryptocurrency industry.
The cryptocurrency market is not affected by major economic and political news that affects the currency and stock markets. The US unemployment rate, the US-China trade war, and the new interest rate from the European Central Bank could wreak havoc on currencies and equities. On the other hand, the specific set of currency-related news is the main influencing factor and driving force behind market fluctuations.
The Bitcoin market is focused on new government regulations and other government moves. Furthermore, this market is sensitive to updates: the successful launch of new platforms, price updates, movements of major players, etc.
The group of crypto experts is diverse. On the other hand, the cryptocurrency market values technical experts, owners of large startups, large investors in the market, and others. On the other hand, the crypto market is full of social climbers: YouTube bloggers, news writers, self-promoting traders, and other strong voices.
As a result, distinguishing between a true expert’s opinion and a fake is a difficult task. As a result, the opinions of experts have an impact on the market, but the reaction is also short-lived. When the market participants realize that it is a fraud, they stop the transaction and start waiting for the real news.
The main difference between news and rumors is the ability to verify the information. Real-life events, trends, economic indicators, and other search data are used to generate market news. At the same time, the rumors are based on opinions and quotes. However, thousands of investors are buying and selling crypto based on rumors. These transactions cause changes in prices.
When the cryptocurrency market was at its height in 2017, even minor news could cause prices to fluctuate. However, the cryptocurrency market will be quieter in 2020. For example, “breaking news” that Elon Musk intends to invest $1 million in Bitcoin is unlikely to impress investors. However, rumors are a way of manipulating the market, so the cryptocurrency market is not immune to it.
Cryptocurrencies are based on blockchain systems and were probably the first high-tech payment method. However, technologies do not exist in a vacuum: they evolve and change all the time. Significant technological changes can be disruptive to the cryptocurrency market, but they usually don’t happen suddenly, giving the market plenty of time to adjust.
Cost of Gold
Gold is widely considered to be one of the main active reserve assets in the financial markets. When the value of fiat currencies falls, financial investors turn to reserves such as gold, silver, and commodities. Cryptocurrencies are also an alternative investment option in times of economic turmoil. The increased demand for the metal is driving up the price of gold and investors are starting to buy bitcoins.
Due to the coronavirus pandemic, the price of gold reached new highs in 2020. China is the world’s largest gold exporter and production there has stopped after several weeks of quarantine. Due to the limited production of the metal, the price of gold rose and the demand for Bitcoin increased dramatically. However, another economic downturn could frustrate investors and drive them away from the volatile cryptocurrency market.
Trends in Cryptocurrencies 2020-2023
Considering the key impact factors, any cryptocurrency player should also follow the top cryptocurrency trends from 2020-2023. Of course, everything can change very quickly: no one expected the coronavirus pandemic and the global quarantine at the beginning of 2020, not to mention the economic crisis in the world’s major economies. We created the forecast based on the current market situation and expect the major crypto trends to continue indefinitely.
COVID and Bitcoin: Halving for 2020
As mentioned above, the previous halving of 21 million bitcoins has intrigued investors. The reason is simple: the shortage of new supply of bitcoin is driving up the price. Also, as the price increases, Bitcoin becomes more profitable, mining speeds up, and the end of Bitcoin draws near. When mining farms, mainly in China, close down, Bitcoin faces a serious challenge. However, he regained his position after the turmoil. So at least Bitcoin will stay on top in 2020 – we don’t expect another crypto winter.
Also, Bitcoin is benefiting from the pandemic. During periods of financial market volatility, investors turn to reserve assets such as metals, commodities, and cryptocurrencies. Furthermore, in a post-pandemic world, dissatisfaction with the traditional economy and fiat currencies will drive new entrants into the world of cryptocurrencies. Bitcoin, as the oldest and most trusted currency, will continue to lead and set the major cryptocurrency trends.
An interesting tidbit: Tom Lee, a former JP Morgan analyst, believes that the fair price of bitcoin is $14,800, but it could rise to $150,000 if the number of bitcoin wallets reaches 7% of the number of Visa cards (for now )4 5 billion). Regardless, the Bitcoin forecast for 2020-2023 is quite bullish.
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