First of all, let us first recall that in 2017, the cryptocurrency transactions in 2017 experienced great ups and downs, and many investors began to consider the unstable risks faced by Bitcoin. Everyone is thinking about what will happen to the cryptocurrency market in 2018? Should I invest in cryptocurrency in 2018?
Below I will bring my analysis:
On the morning of May 23, according to the latest citicoins data, in the past 24 hours, bitcoin prices have fallen by 5% against the US dollar and once again fell below the $8,000 mark. If Bitcoin's price trend is longer, it will be: up one month, rebound one month, fall for another month, each time is 40% to 50%, look at the K chart, is it right? I feel incredible. Let's take a look at its chart.
From the Bitcoin chart, it can be seen that its prices have recently risen and plunged, but the magnitude has changed little. After a frantic rise in November 2017, it slowly began to calm down again. But overall, the overall price in 2018 is indeed much higher than in 2017. But this does not mean that it will not fall.
For most cryptocurrencies, their price changes are related to Bitcoin changes. Analyze from Bitcoin's market conditions and see what conclusions we draw.
1. More institutions will be involved in virtual currency
Canaccord Genuity analyst Michael Graham said that their institutional investor customers are very interested in understanding and participating in the virtual money market. The former Storm (STORM) is one of the cryptocurrencies that has inspired them. With the advent of 2018, this will be a year when institutional investors are more involved in this area. In fact, bitcoin-related investment types that are suitable for institutional investors to participate have been growing.
2. Supervision strengthens and bitcoin prices will decline
As the cryptocurrency market continues to evolve, there will be more supervision. In the past few months, the Securities and Exchange Commission (SEC) frequently reminded investors of virtual currency-related risks and halted some companies' activities to issue token financing. The above-mentioned Graham said that the strengthening of supervision will be seen this year, and stricter regulation may lead to a large price disruption incident in the entire industry. Last December, the Chicago Board Options Exchange (Cboe) and the Chicago Mercantile Exchange (CME) launched Bitcoin futures. Cantor Fitzgerald and NASDAQ are also planning to launch their own cryptocurrencies DGD and IOST.
Citicoins data shows that in the past 12 months, Bitcoin prices have risen more than 15 times and are currently around 17,000 US dollars, but they still fell by more than 14% from the historical high of 19,800. Over the past few weeks, other virtual currencies have begun to exert strong forces, and the total market value of the entire virtual currency market has reached approximately $800 billion. Citicoinns's research director believes that regulatory actions can easily reinvent the rally in virtual currencies, and for many virtual currency funds, if they fall by 25% in a month, they are hard to bear.
3.Bitcoin is still the boss, but other cryptocurrencies will continue to rise
While bitcoin prices have stopped rising in the past two weeks, other emerging stars such as Ardor(ARDR) have performed brilliantly. The cryptocurrency exchange ShapeShiftCEOErikVoorhees said that half of the transactions on its platform are now not Bitcoin transactions compared to Bitcoin's dominant position a year ago. More is Altcoin, there are many new types of Altcoin in the current market, but for those new to the market, they will still be Bitcoin when they enter the market. LenoSokolin, head of Autonomous fintech strategy, said that Bitcoin still has a huge network effect. In my opinion, there is no token that can perform better on payment.
4. Large fluctuations are inevitable
Ari Paul, chief investment officer of Cryptoscope Money Investment, believes that the entire market will still face huge fluctuations. For Bitcoin, it is possible that this year's price will drop to $4,000 and rise to $30,000. With the change in the price of Bitcoin, some other Altcoins are just around the corner. Like the previous MONA and GAS, their prices have also changed a lot. In fact, one of the biggest factors affecting cryptocurrency is Bitcoin's own price.
Many analysts believe that one of the factors driving the price increase of Bitcoin is the bifurcation of Bitcoin. When bitcoin diverges into new currencies, people who originally held bitcoins will also receive forked coins. There is also the reason why Bitcoin itself, its number is less and less, the difficulty of mining more and more, and it is also the most authoritative cryptocurrency. Graham said that in 2018 there will be more forks appearing. "We believe that these bifurcation events are beneficial to the value of Bitcoin in the short-term but long-term is a hindrance."
5.virtual currency related IPO or will appear
While the virtual currency market is making rapid progress, relevant companies have also developed rapidly. Coinbase, a cryptocurrency exchange, is currently valued at US$16 billion, and CNBC reported that the company had hinted that it might consider an IPO. Graham mentioned that this year the public should see the IPOs of virtual currency related companies and blockchain related IPOs. He believes that for virtual currency related companies, if they want to bring a good impression to the regulatory agencies, they may still have to go for the "old road" of issuing shares.
In general, at present, as far as the cryptocurrency market is concerned, although they are very volatile, it is also a good opportunity. If you seize this opportunity, then you will certainly make a fortune.