The stage seems to be set for a dramatic surge in cryptocurrency prices, like the one we experienced in 2017. However, Bitcoin, the world's largest digital currency, may not be the one that triggered the blast this time.
What's new for the cryptocurrency market?
This year has been horrendous for the cryptic market. Some digital currencies have lost 80 percent compared to the high historical values reached in January 2017.
However, for some economists, this immersion in land-related values may prove beneficial to the market. Indeed, referring to the cryptic depressed market, economist and Bloomberg The reviewer Tyler Cowen writes: "But perhaps this development is exactly what we need to encrypt to make the next step forward".
In recent weeks, the price of Bitcoin has increased modestly but steadily. In fact, at the time of writing this document, the Bitcoin volatility index for the last 30-day estimate is equal to 1.55% and for the most recent 60-day estimate it is equal to 1.54%.
Investors find the low volatility of Bitcoin encouraging because it could help Bitcoin 00 gain traction as a payment method and as a "digital gold" for storing value.
In addition, the US Securities Exchange Commission (SEC) may favorably consider the low volatility of Bitcoin when deciding whether to approve or reject the Bitcoin petitions of the ETF. In fact, low volatility could be evidence that price manipulation is diminishing.
Now, many cryptoanalysts expect an explosion of encrypted prices because the market has practically a flat line, which could be indicative of a possible fund. In this regard, Anthony Cuthbertson writes, "cryptocurrency analysts believe that the market may be about to reflect the earnings it experienced in late 2017."
However, notes Cuthbertson,
The only caveat is that it might not be bitcoin that carries the charge this time.
Could ETH or XLM be the next spark?
The question is: if Bitcoin will not be the one that will turn on the rocket for the subsequent explosion of encrypted prices, what currency would the catalyst be?
Ethereum, or a crypt based on Ethereum, could be a candidate. According to Santiment, the networks based on Ethereum "are waiting for the ETH to recover: they are preparing their own upward race".
And, Cuthbertson cites the technology expert Ian McLeod of Thomas Crown Art, who states that Ethereum "could be on the verge of a monumental and definitive global breakout".
Or, the detonator could be a cryptographic currency still unknown as Stellar Lumens (XLM) 00.
Blockchain has announced that since November 6, 2018 donated $ 125 million in XLM to its Wallchain Blockchain users who registered for the airdrop.
We will manage the program in the next few months, with daily distributions in small tranches compared to the market. To participate, go to: https://t.co/ker4VxVrTj
– Peter Smith (@OneMorePeter) 6 November 2018
Blockchain's logic behind the airdrop is to drive the decentralization and popularity, or use, of the network.
However, we do not rule out the possibility that ten-year-old Bitcoin will ignite the next market explosion. After all, Bitcoin remains the largest cryptocurrency, and continues to help businesses, such as the Financial Services company Square, become profitable.
Which cryptocurrency do you think will drive the cryptography market to new highs?
Images courtesy of Twitter / @ OneMorePeter, Shutterstock