Trends That Shape the Future of Cryptocurrency Markets

Cryptocurrency markets are becoming an important and widely used medium in world trade. The main feature that makes cryptosporrencies popular with traders is that it works globally. Many governments are introducing policies that will allow the legal trading of cryptocurrences, as well as encourage private initiatives to introduce the technology everywhere. Cryptocurrency is an internet-based money that is not backed or secured by a physical commodity like gold. This means that the risk of theft is significantly lessened, though the value of coins is still dependent on the supply and demand process.

bitcoin price: Top cryptocurrency prices today: Bitcoin, Polkadot, Ethereum  slip up to 4% - The Economic Times

With the introduction of Cryptocurrency and its associated technologies, we will witness significant market efficiency for both buyers and sellers . Cryptocurrency trading will enter into the mainstream of the global economy. Many leading economies around the world are considering introducing regulated Cryptocurrency markets within their own countries. In the coming years, the use of Cryptocurrency may become the most popular global business activity. In the coming weeks, we will witness the coming of sensoy, the first ever full time commercial Cryptocurrency Broker to be launched.

At the moment, there are many people who believe that the future of Cryptocurrency depends on the adoption of the adaptive market hypothesis. The Adaptive Market Hypothesis, also known as AMH, is a model which assumes that the supply and demand of currencies will follow a self-sustaining cycle, which enables the growth of Cryptocurrency. We have already seen how the introduction of colored coins paved the way for greater usage of the new virtual asset, but the main problem remains: the ability for a new currency to quickly take off and become mainstream. If the supply and demand forces are able to balance themselves in the future, then we can expect a major leap forward in the use of Cryptocurrency.

The adaptable market hypothesis postulates that the future of Cryptocurrency is built on a distributed ledger. It also suggests that the market will be driven by two major forces: random Walk Optimization and technical analysis. According to the random walk principle, Cryptocurrency users will adopt a policy of not following the same path as the market and try to observe the behaviour of the market without following its current trend. As a result, a major Cryptocurrency migration will happen and the old coins will be converted into new ones.

The technical side of the Adaptive Market Hypothesis explains why we should expect major changes in the Cryptocurrency Market in the next two years. The first and most noticeable change comes from the rise of the two leading tokens, namely, bitcoin and monero. Both tokens have reached record highs in the last week and they have already carved out a significant portion of the overall daily trading volume on the global Cryptocurrency Market.

There is also a high chance that investors will convert their smaller monero and bitcoin into big denominations like USD/CHF and USD/JPY. The main argument for this is that if a majority of traders are willing to sell their smaller coins for large volumes, the price of the bigger ones will also tumble. In fact, some people are speculating that the biggest beneficiaries of this trend will be the big players in the Cryptocurrency Markets such as WLL, AHH, BTS, and others. This trend will only be seen during the second half of 2021, when the average number of traders selling their smaller coins for larger ones will reach an all time high.

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