The Second Wave Of Bitcoin
Analysts of the crypto market increasingly prefer to remain silent, instead of giving 100% realistic predictions for 2018. For the last few months Bitcoin has more than just added negative points to the ratings of market «fortunetellers», leaving them in rather a compromising situation. Nevertheless, anyone would like to forecast the future of the crypto market. What factors do really affect the exchange rate of the most popular crypto asset? Is Bitcoin’s complete recovery real?
Volatility is what unites all digital coins. During the first weeks of February, the value of the key player of the crypto market, BTC dived to a deep, although not fatal, bottom, and today it’s approaching a new psychological barrier of $12,500. So, for less than two weeks, the growth accounted for 90%.
The causes of the tumble
To understand whether Bitcoin is capable of returning to former heights, it’s necessary to analyze the reasons of that dive. The reasons for the recent sink of the BTC to $6,000 are clearly traced. The main factor, constantly putting pressure on the value of this asset is the strict regulatory activity of governments worldwide. Let’s recollect a number of the most important events of the world economy which have generated a downbeat news background, holding quotes below:
- China. This Asian country has given birth to myriads of crypto mining farms. That’s why the country’s government was concerned over the amount of energy consumed. As a result, the Chinese authorities made up their mind to ban crypto mining.
- South Korea. That’s one of the first countries that started a tighter regulation of crypto exchanges, with threats to ban them.
- India. The Indian government found a threat in the very fact of using crypto assets as a means of payment, and in February it spread the news about the total ban of the circulation of digital coins in the country.
- Thailand. In this country digital currencies were labeled as an instrument of terrorism financing. Therefore, the country’s banks weren’t allowed to conduct any operations with crypto assets.
- Japan. In the country the income from crypto trading became the official profit, although heavily taxed – up to 55% of the profit.
The beginning of the second wave
By February 20, the value of Bitcoin exceeded $11,500, and this surge was also inspired by the same news background. There weren’t any shocking global news, but in general the current situation with the crypto asset is quite positive and the value of Bitcoin keeps soaring:
- The regulation in South Korea has somewhat softened and the government has allowed crypto exchanges to proceed with their activities in the country (although taxes have been imposed).
- In Switzerland, some of the tokens have been officially equated to securities.
- The large banking organization Bank of America has approved the registration of up to 45 cryptocurrency patents.
As we see, the value of Bitcoin directly depends on sudden breaking news. It’s not easy to objectively predicting the future of the cryptocurrency, as no one know the intentions of large regulators as for the most popular digital asset.
One of the largest crypto investors and analysts, Tony Veis suggested one of the most appropriate scenarios for the development of Bitcoin’s value in the nearer future. Well, he’s assured that fantastic figures such as of $100,000 won’t be reached by the digital coin, but $25,000 may come true. This forecast looks the most plausible, and if it’s right, traders will still have chances to earn a good income from long-term investments and long trading positions.
Making money on crypto assets with a broker
No matter whether the crypto asset dives or ascends you can earn on it if you opt for a suitable brokerage company. Sure, you want to know why you’d better stick with a broker and not a crypto exchange.
First, trading with a broker suggests more trading pairs and also an ability to make deals with fiat money. Secondly, the brokerage company’s trading terminal is multifunctional and it allows using indicators to form your own strategy. Moreover, margin trading, which is absent in most crypto exchanges, gives a great opportunity to earn on a downtrend and receive a good income with a relatively low deposit.
Thirdly, the reliability of many crypto exchanges has been questioned for the last time. For the last six months crypto investors have lost millions of dollars due to hacker attacks, technical malfunctions and a strengthening state control. The regulated broker AMarkets has been on the market for 10 years. It’s still holding an excellent reputation as a reliable partner for traders around the world.
In the case of AMarkets, reliability is confirmed not only by time, but also by authoritative organizations, such as the Financial Commission and Ernst & Young. The Financial Commission insures customer accounts for up to $20,000, and guarantees the broker’s compliance with the highest industry standards. The audition of AMarkets was carried out by Ernst & Young company – the voluntary passing of an audit by the broker in such a large company is undoubtedly a step towards openness and transparency of activity.
Another great advantage of using brokers is that they usually come up with a lot of bonuses and actions. By the way, AMarkets currently offers one of the most profitable conditions in the industry for crypto trading, with reduced spreads and improved swaps. You can learn more about them on the website. If you replenish your Bitcoin wallet for the amount of $300, the broker will increase your trading deposit by half!
Open a trading account
In conclusion, we would like to remind you that due to the high volatility and unpredictability of the exchange rate of the crypto asset we advise you to thoroughly study the market and peculiarities of crypto trading. Enrich your knowledge and take time to work out trading strategies to minimize your risks and make a good income. You shouldn’t invest in the chosen cryptocurrency all your money. Instead, you need to invest exactly as much as you are ready to lose. You should try distributing your deposit on several trading instruments in order to tame your risks and increase the probability of profit. Successful trading!
Choosing A Reliable Broker
|Broker||Bonus||Min Deposit||Payout||Review||Open Account|
|$10||Up to 91% *||Review||Visit Broker|
|Up to 50%, not available in EU countries||$100||Review||Visit Broker|
|Up to 100% deposit||$10||Up to 90%||Review||Visit Broker|