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Get the latest update on whether cryptocurrency is going up or down. We cover all the major currencies and give you our verdict on which way the market is headed.
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Introduction
Is crypto going up or down?Bitcoin and other digital currencies have had a roller-coaster ride this year, with prices falling sharply early in the year and then bouncing back in recent months.
The value of Bitcoin, the best-known and most widely used cryptocurrency, topped $1,000 at the start of 2017, before crashing below $300 by mid-year. It then staged a recovery and was trading above $11,000 by early December.
Other cryptocurrencies have followed a similar pattern over the past year. Ethereum, the second-largest cryptocurrency by market value, was trading below $10 at the start of 2017 but soared to more than $1,400 by January 2018 before slumping to around $400 by mid-year. It has since recovered and was trading above $700 in December.
The volatile prices of Bitcoin and other cryptocurrencies have led to widespread speculation about their future prospects. Some analysts believe that digital currencies could become a mainstream payment method within a few years, while others remain unconvinced and believe that their popularity is largely due to speculative investment.
Factors That Drive the Price of Cryptocurrency
Cryptocurrency is a digital or virtual asset that uses cryptography to secure its transactions. Cryptocurrency is decentralized, meaning it is not subject to government or financial institution control. The price of cryptocurrency is driven by a variety of factors.
Media and Sentiment
In addition to news, social media has played a big role in the price movements of cryptocurrencies. From Twitter and Reddit to newly created sites like EthStats and CryptoPanic, there is no shortage of sites where crypto investors can get their news fix. When prices are on the rise, social media is often awash with posts declaring that “[insert crypto] is going to the moon!” On the other hand, when prices are crashing, social media is filled with posts declaring that “[insert crypto] is dead!”
While it’s impossible to know for sure how much influence social media has on the price of cryptocurrencies, there’s no doubt that it plays a role. In general, when sentiment is positive on social media, prices tend to rise. When sentiment is negative on social media, prices tend to fall.
Regulation
When it comes to the price of cryptocurrency, regulation is one of the key drivers. Governments and financial institutions around the world are still coming to grips with digital assets, and how to deal with them. In some cases, this has led to a cracking down on cryptocurrency trading and initial coin offerings (ICOs), while in others it has resulted in a more open approach.
One of the most notable examples of government intervention in the crypto markets came in September 2017, when China announced that it was banning ICOs and shutting down domestic exchanges. This sent the prices of major cryptocurrencies tumbling, as investors worried about the future of the industry.
Similarly, South Korea has also been cracki
Adoption
Adoption is one of the primary drivers of cryptocurrency prices. When more people use or invest in a coin, the price goes up. Usually, this happens because the coin offers something new or unique that traditional investments don’t, such as full anonymity or near-instantaneous transactions. As adoption increases, so does demand, and prices usually follow suit.
Technology
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
The first cryptocurrency was Bitcoin, created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Since then, numerous other cryptocurrencies have been created. These are frequently called altcoins, as a blend of alternative coin.
Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. The prices of cryptocurrencies are determined by supply and demand; When demand for a particular coin exceeds the available supply, the price goes up.
Conclusion
It is evident that there is no simple answer to the question of whether or not crypto is currently in a bubble. While there are certainly some signs that point to a potential bubble, such as the high price volatility and increasing number of ICOs, it is also clear that the underlying technology of blockchain has a great deal of potential. Only time will tell whether or not the current hype surrounding crypto is sustainable in the long term.
