How fundamental factors influence the cryptocurrency exchange rate

zzam26

Investors believe positive news and ignore bans from China and South Korea LiteFinance: How fundamental factors influence the cryptocurrency exchange rate |  Litefinance On the eve of Segwit2x bitcoin for several days strengthened by more than 1000 US dollars and broke the level of 7000 dollars. Someone believes that the exchange rate of bitcoin and cryptocurrencies is growing thanks to speculative capital, on the contrary, others believe in the future of blockchain. A number of countries are on the path of progress, and some countries, on the contrary, impose limitations, trying to bring cryptocurrencies under fiscal control. Traders ignore limitations, preferring to react to positive news. How fundamental factors influence cryptocurrencies and why legislative restrictions are ineffective, read our overview. What is a cryptocurrency afraid of? There are still 2 weeks left before a new bitcoin fork, but the cryptocurrency is already setting new records in growth speed and all-time highs. Only in the last few days BTC has appreciated by more than 20%, rising from the level of 5700 to the level of 7200, in one year the cryptocurrency has grown almost 900% and clearly it will not stop there.

So far the most optimistic forecasts of analysts regarding the bitcoin rate are around 10,000 US dollars by the end of the year. According to the Coin Market Cup website, the capitalization of bitcoin passed the level of 120 billion US dollars and they Peru Mobile Number List  represent more than 60% of the total capitalization of all cryptocurrencies. Just a month ago, the entire capitalization was around 130 billion and bitcoin's share of it was around 47%. LiteFinance: How fundamental factors influence the cryptocurrency exchange rate |  Litefinance In this image it is clearly seen that only BTC has an even ascending graph, as well as the appearance of the BCH fork in August and BitConnect (the cryptocurrency appeared in January 2017 and according to most it is a classic pyramid, that is, at a high level) . For some cautious investors, such rapid growth in bitcoin causes some concerns. The speculative growth of BTC is too fast compared to other cryptocurrencies and may persist after fork (demand grows only because there is a possibility of obtaining coins after Segwit2x).



Some analysts compare the situation of the cryptocurrency market with the situation in 2000 ("Dotcom bubble"). Volatility of 400-500 US dollars in one day is too much. With such a strong increase one can expect a no less strong decline. There are increasing restrictions regarding transactions and mining by various countries. Fears related to bitcoin's decline after fork are in vain. After the appearance of VSN in August, the bitcoin exchange rate, on the contrary, rose. A similar situation with Bitcoin Gold. Only on the eve of the fork there was a slight decline, and then again growth. Fears in vain in relation to the "Dotcom Bubble". Supporters of cryptocurrency believe that the argument behind blockchain technology, in the future, is the interest of corporations in the technology. The capitalization of cryptocurrencies is 200 billion US dollars, the capitalization of NASDAQ companies at the time of the crash on March 10, 2000 was trillions, so it is inappropriate to draw an analogy between cryptocurrencies and NASDAQ.