It is well-known that right now there is a huge sell-off when it comes to cryptocurrencies. The ban on advertising is one of them and there has been a lot of hype taken away from the market in general. There are tons of reason behind this, but the main one seems to be the fact that a government regulation has come into place. The government regulation is a very sensitive issue for the market in general, but it is said that there are going to be some stabilising factors coming to light soon. This could include funds sitting on the sidelines. This will ultimately define the prices and not a lot of people are thinking about this.
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So that raises the question, what would have to happen in order to boost the cryptocurrency market from rock bottom? The market would have to start responding more to public companies and cryptocurrency would have to go fully mainstream. Companies who do invest in it would have to be current leaders in establishing blockchain as well, as the idea of a long-lasting technology would certainly be enough to inspire other people to support it.
It’s really important to remember that from the 30th of March, Bitcoin actually closed at $1026 but recently it has closed at $7,165. A 12-month run like this has not been seen in any other market, and when you look at the bigger picture, some people even may be inclined to believe that it never really crashed at all.
The problem is that when you bring more cryptocurrency to the market, this will go on to raise up the horizontal supply of all cryptocurrencies and this is already close to 1400. A bigger supply will then turn into a depression for the currency rather than boosting the prices of it in general. Investors really do need to be reminded of the older Wall Street adage. This idea revolves around the fact that past performance is absolutely not a guarantee for future performances.