Where is the crypto market heading the next weeks? Some of these events are triggering or will trigger a down or uptrend. I am very curious to see which will happen. I will talk about the potential upcoming crypto regulations as well as the rising institutional investments. As always: This article is for entertainment and education only and none of this is financial advice.
FAKE NEWS AND REAL NEWS
There were some fake news going around! One of them was that Walmart adopts Litecoin as a way to pay. In response to that, the crypto market saw a big uprise until it was clarified that this news was fake. On the other hand AMC announced that they are planning on accepting Ethereum and other crypto currencies as payment options. The temporary rise of the crypto prices can be explained with these news but also with the additional fact that there is a low volume at the exchanges right now. This leads to very high volatility which can be easily exploited by these kind of news. Lets imagine that a big retailor like Walmart will announce real news. This could shoot the crypto prices to the moon. On the other side of the coin bad news could lead to a massive dump which brings me to the next section.
CRYPTO CRACKDOWN?
The treasury plans to target crypto ransomware payments with sanctions. By doing that they will probably targeting the entry and exit points of crypto transactions. That would be the exchanges. By doing this the government hopes to limit the use of cryptocurrency as a payment to finance terror or hacker attacks. The same goes for potential crypto regulations in October that will most likely target these kinds of transactions. In addition to that a blacklisting of crypto addresses is planned. In my opinion the intention is right. The only problem with governments is that they are not always telling the 100% truth. Who knows how the blacklisting of addresses will work and what if your address gets blacklisted without any notice. People could loose a lot of money with that. But where there is bad news, there are also some good news which I cover in the next section.
INSTITUTIONS ARE GETTING MORE INVOLVED
There is a certain observation that the institutional investors are buying more crypto than ever before. There is a record outflow from the exchanges which is also causing the volatile conditions that were mentioned in the first section of this article. This means that the investors are buying and holding, not selling! A prominent example for this is Kevin O’Leary. According to an article he is planning to double his crypto holdings! In my opinion this guy is a very smart investor who knows what he is doing which means that hodlers could get rewarded in the long term. Furthermore, JP Morgan reports that the institutional interest in crypto is at an all time high.
CONCLUSION
This brings us to the one and only question: Where will the journey go? Up or down? This will depend on a lot of factors. Especially how the government will deal with the regulations and new laws. Nevertheless, I think that long term there is only one way and this is up. As long as crypto continues to reach people in the mainstream it can only go up and as long as more and more countries try to adopt crypto (like El Savador or Cuba) it has very high future potential. My only issue right now is that whales can manipulate the market very easy. Due to the high volatility (due to low volume) and big institutions buying the majority of the funds that could bring a high manipulation factor to the market.
Published by ga38jem on Publish0x on the 21th of September 2021
