The stage seems to be set for a dramatic cryptocurrency price surge, like the one we experienced in 2017. However, Bitcoin, the world’s largest digital currency, might not be the one triggering the explosion this time.
What’s Next for the Cryptocurrency Market?
This year has been horrendous for the crypto market. Some digital currencies have lost 80 percent from the all-time high values they achieved in January 2017.
However, for some economists, this dive to earth-bound values might turn out to be beneficial for the market. In effect, referring to the depressed crypto market, economist and Bloomberg opinion columnist Tyler Cowen writes, “But perhaps that development is precisely what we need for crypto to take the next step forward.”
For the past several weeks, Bitcoin’s price has been increasing modestly but steadily. Indeed, as of this writing, Bitcoin’s volatility index for the latest 30-day estimate is 1.55 percent, and for the most recent 60-day estimate is 1.54 percent.
Investors find Bitcoin’s low volatility encouraging because it might help Bitcoin 00 to gain traction as a payment method and as ‘digital gold‘ for storing value.
Moreover, the U.S. Securities Exchange Commission (SEC) might view Bitcoin’s low volatility favorably when deciding whether to approve or reject ETF Bitcoin petitions. In fact, low volatility might be evidence that price manipulation is receding.
Now, many crypto analysts are expecting a crypto price explosion as the market has pretty much flatlined, which may be indicative of a possible bottom. In this regard, Anthony Cuthbertson writes, “cryptocurrency analysts believe the market might be on the verge of mirroring the gains it experienced in late 2017.”
However, Cuthbertson notes,
The only caveat is that it might not be bitcoin that leads the charge this time.
Could ETH or XLM Be The Next Spark?
The question is, if Bitcoin will not be the one igniting the rocket for the next crypto price explosion, then, which currency would be the catalyst?
Ethereum, or a crypto-based on Ethereum, could be a candidate. According to Santiment, Ethereum-based networks “are done waiting for ETH to bounce back: they’re paving their own bull run.”
And, Cuthbertson quotes technology expert Ian McLeod of Thomas Crown Art, who says that Ethereum “could be on the verge of a monumental, defining global breakout.”
Or, the detonator could be a yet unknown crypto coin such as Stellar Lumens (XLM) 00.
Blockchain announced that from November 6, 2018, it was giving away $125 million in XLM to its Blockchain wallet users who sign up for the airdrop.
We'll be running the program over the next few few months, with distributions done daily in small tranches relative to the market. To participate head to: https://t.co/ker4VxVrTj
— Peter Smith (@OneMorePeter) November 6, 2018
Blockchain’s rationale behind the airdrop is to drive decentralization and popularity, or use, of the network.
However, let’s not discount the possibility that ten-year-old Bitcoin could ignite the next market explosion. After all, Bitcoin remains the largest cryptocurrency, and it continues to help businesses, such as financial services company Square, become profitable.
Which cryptocurrency do you think will drive the crypto market to new highs?
Images courtesy of Twitter/@OneMorePeter, Shutterstock
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