This year, investment funds have openly announced the creation of BTC ETFs and ETH ETFs that cater to classic investors. In the current cycle, the cryptocurrency market is in a period of revitalization thanks to the large amount of liquidity issued in the US in 2020, with new money rushing into young financial markets.
At the very peak of the past bull cycle, the price of bitcoin was as high as $68,000 per coin! As of the end of 2023, cryptocurrency prices have yet to reach their highs, which means that money from other markets, will gradually still flow into the digital asset market. Eventually, many cryptocurrencies should return to their local highs of 2020.
Cryptocurrency market capitalization
Based on this, we assume that cryptocurrencies will continue their growth, even without the inclusion of new financial stimulus. However, it is likely that the introduction of new quantitative easing in the U.S., given the decline in inflation and the growth of bankruptcies in industry.
New money will flow into the cryptocurrency market, which will give a boost to many tokens.
However, a negative scenario cannot be ruled out. A ban on cryptocurrencies in the United States and other major countries could have a bad effect on the market. The government needs to borrow money to service its huge, and cryptocurrencies (like markets in other countries) are a competitor to government bonds. The fact is that U.S. trejeris are no longer as popular as they once were, and investors continue to carry money into the crypto market. In order to preserve the current financial system, cryptocurrency may try to be restricted in countries with large debts.
Assuming this is the case, then we will see the cryptocurrency market fall to fall 2022 prices, which will be rapidly redeemed through decentralized platforms. Oh, and p2p is not so easy to ban either.
In any case, you need to be careful about investing:
- not to put all the money in one coin and diversify positions;
- do not trade on borrowed money, invest those funds that are not afraid to lose or freeze for a year or two.
So where to store digital assets? It is better to store cryptocurrency in a safe jurisdiction, when you can visit the company and talk to specialists in their official office.
AWEX has been working on the cryptocurrency market since 2018 and has managed to show itself from the best side. The platform awex.pro is great for safe purchase and storage of cryptocurrency.
Take care of yourself and your finances. Invest wisely!