According to experts, the likelihood for any cryptocurrency will be able to reach maximum values is extremely low in the coming year. They believe that the explosive growth of the price at which Bitcoin approached $ 20,000 and Ethereum worth almost $1500 is in the past.
Currently, cryptocurrency number 1 is trading at around $3,800, and the cost of the second largest digital currency has dropped to $150. Experts believe that a large-scale price reversal in the near future should not be expected.
Analysts also record a decline in investor interest in the majority of new virtual currencies. They are confident that against the background of a general fall in the crypto market. We should expect less ICO activity. Currently, the market is dominated by a cautious approach to investing, experts emphasized.
This year, market participants expect tightening control by the regulatory authorities. Earlier, the Securities and Exchange Commission (SEC) of the United States filed charges against a number of wrongful actions in connection with a violation of the Securities Act. At the same time, due to the lack of clarity of the wording of the SEC, it took about a year to decide on the procedure for dealing with violators. According to analysts, in 2019, new claims from the department against ICO and digital exchanges are not excluded. All this scares potential investors. At the same time, the preservation of the "bearish" trend in the market forces investors to invest in safer and time-tested assets, such as gold and the US dollar.
The US Securities and Exchange Commission disapproves of ETF funds. The SEC emphasizes that this financial instrument can only be launched if it is proven impossible to manipulate this class of assets. At the moment, almost all crypto projects are under development, which makes them less stable than the SEC would like. Another requirement of the department is transparency, which also complicates the work of the SEC. Recall that confidentiality is considered to be one of the important principles of a crypto-active asset, which conflicts with the regulatory requirements of the SEC regarding the disclosure of the identities of participants in transactions.
Despite the "bearish" nature of the digital asset market, fans and cryptocurrency owners do not intend to abandon this class of assets. Many development teams are still working on creating an infrastructure for virtual currencies. Technological constraints require new solutions from highly qualified specialists.
A lot of teams are also working on the Ethereum project. Their priority is the implementation of a six-stage plan, thanks to which the new network Ethereum 2.0, or Serenity, will be launched. The launch of this update is scheduled for the fourth quarter of 2019. It provides for a transition from the "Proof of Doing Work" (PoW) protocol to the "Proof of Share of Ownership" (PoS).
Experts believe that most of these updates will not have a particular impact on cryptocurrency until 2020, but hope for the best. Experts are confident that the market for digital currencies will update a maximum not earlier than in two to three years when mass introduction and widespread use of innovative technologies will occur. Another scenario is a significant inflow of capital into the cryptosphere, which can provoke a new wave of cryptocurrency fever.
The material has been provided by InstaForex Company - www.instaforex.com