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What affects the cryptocurrency rate?

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28.05.2019
What affects the cryptocurrency rate?

Digital currency has become one of the most appealing ways of investing today. Special attention is paid to Bitcoin and Ethereum, the prices of which have exceeded all expectations and forecasts. Many investors wonder whether there are any prospects for cryptocurrency growth in the second half of 2019. This is a very topical issue, as the current digital currency market is still quite volatile.

What affects the cryptocurrency rate?

The value of all world assets changes continuously. A distinctive feature of each asset is the degree of its volatility. Trading is conducted on the exchanges every minute. The exchange rate depends on supply and demand, as the law of its formation is based on the statement: “purchase promotes the price growth, sale - the reduction.”

If there are more buyers than sellers, it means that the exchange rate will rise. If the situation is opposite, it will decrease. The reasons for supply and demand formation include:

  • behavior of major players who have enough capital in their hands to indicate the direction of further development;

  • euphoria or panic associated with economic fluctuations;

  • investors' mood formed on the basis of news and forecasts;

  • other fundamental parameters, such as emergence of new innovative technologies. Introduction of smart contracts has once become one of these key aspects.

Today the one can clearly see a direct correlation between movement of the entire market and the flagship -Bitcoin. In simple words, altcoins follow Bitcoin's exchange rate.

Cryptocurrency prospects for 2019

The digital currency market is very young, so the level of its variability may fluctuate in both directions. For this reason, even the most experienced and qualified economic experts do not offer any exact forecasts.

On the Internet, the one can find numerous “accurate” analytical reports. We do not recommend to be guided solely by them, because lucrative trade requires a comprehensive and profound analysis of all prospects and features of the market.

We will not guess, but we will tell you about the two most promising areas - Bitcoin and Ethereum:

  • in 2019, the leading position will be taken by Bitcoin, as there is a high demand for this “digital gold” among the ordinary investors and major players. Today there are about 13 million coins in circulation; therefore, its cost will grow to satisfy all the needs. Some experts claim that one coin will habe the price ranging from 14000 to 15000 USD. According to the most pessimistic forecasts, 1 BTC will cost 3000-6000 USD;

  • Ethereum is backed by revolutionary technologies (smart contracts) and an innovative platform where you can create your own personal blockchain apps. A huge number of ICOs is held on Ethereum platform; over 1000 startups have been launched on it since its inception. ICO development is very fast, but nevertheless, in 2019, Ethereum exchange rate is unlikely to match Bitcoin, since the number of coins is about 100 million. Developers plan to present PoS algorithm to reduce the coin inflation. The average statistical forecasts — up to 1500-1650 USD per coin.

Globally, cryptocurrency is in a fair way to increase in value in tens or hundreds of times, especially compared to the current figures. We want to remind that you may to see all rates on the our exchange rates page. Also you can use our cryptocurrency converter.

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