The stage seems to be set for a dramatic cryptocurrency price surge, like the one we experienced in 2017. However, Bitcoin, the world’s largest digital currency, might not be the one triggering the explosion this time.
What’s Next for the Cryptocurrency Market?
This year has been horrendous for the crypto market. Some digital currencies have lost 80 percent from the all-time high values they achieved in January 2017.
However, for some economists, this dive to earth-bound values might turn out to be beneficial for the market. In effect, referring to the depressed crypto market, economist and Bloomberg opinion columnist Tyler Cowen writes, “But perhaps that development is precisely what we need for crypto to take the next step forward.”
For the past several weeks, Bitcoin’s price has been increasing modestly but steadily. Indeed, as of this writing, Bitcoin’s volatility index for the latest 30-day estimate is 1.55 percent, and for the most recent 60-day estimate is 1.54 percent.
Moreover, the U.S. Securities Exchange Commission (SEC) might view Bitcoin’s low volatility favorably when deciding whether to approve or reject ETF Bitcoin petitions. In fact, low volatility might be evidence that price manipulation is receding.
Now, many crypto analysts are expecting a crypto price explosion as the market has pretty much flatlined, which may be indicative of a possible bottom. In this regard, Anthony Cuthbertson writes, “cryptocurrency analysts believe the market might be on the verge of mirroring the gains it experienced in late 2017.”