What are the possibilities for the crypto market in the near future and why are the forecasts of its imminent final collapse far from reality?
In the first half of 2020, the cryptocurrency market was characterized by rather high volatility, however, at the same time, all other financial markets were in a fever. At the same time, many reputable crypto experts see certain prospects for the growth of the rate of cryptocurrencies, and above all of their flagship – bitcoin. Given the long period of volatility, it has shown its effectiveness in a falling market, since in the first half of 2020, the price of BTC increased by 44%.
As for the forecasts for the bitcoin rate for the end of 2020 and the beginning of 2021, the opinions of many experts agree. They foresee first a noticeable rebound to $ 7000-8000 (at the end of September BTC is around $ 10,500), and then growth. To which price it will grow – opinions are ambiguous. For example, the specialists of the Weiss Crypto agency consider it very likely that the bitcoin rate will rise to $ 12,000, but Bloomberg analysts are making much bolder forecasts: they are sure that the BTC rate will grow to $ 25-30 thousand dollars in 2021.
The rate of Bitcoin is a defining trend for the entire cryptocurrency market, since the rate of all other cryptocurrencies is directly tied to it. The perspective for the second most important cryptocurrency Ethereum are also very promising. In the coming months, a major upgrade of the entire Ethereum network is expected, due to the transition to the new Ethereum 2.0 standard, which will solve an important scalability issue. Thus, after the long-awaited update, ETH transactions will go faster and with lower fees.
These events and experts’ forecasts give every reason to believe that the cryptocurrency market (at least its main players) has very good potential for 2021, so it will definitely be premature to “bury” it. And we, in turn, continue to develop tools for full and comfortable participation in this global market.