Are We Facing A Bitcoin Bullrun In 2018?

by Trading 101  //  dec. 03, 2018

The rise of the cryptocurrencies peaked around the end of 2017 and has, since then, been missing in action. There are a variety of factors that played into this relatively steep decline. From being valued at over $18,000 in December 2017 to barely being worth $11,000 in March 2018, Bitcoin has been fluctuating in value quite a lot in the first quarter of 2018. Topics such as government regulations and big businesses getting involved had major impact on the price movements of cryptocurrencies. These are now key topics anyone learning bitcoin trading 101 has to be aware of.

While Bitcoin took the hits and has been trying to recover since, other cryptocurrencies have risen value wise in the meantime. As any savvy investors knows, when markets are volatile, the most amount of profit can be earned. So let’s put on those trading 101 suits and see if we have a bullrun coming up in 2018 – here’s what you need to look out for.

1) Bitcoin Exchange-Traded Funds (ETFs)

ETFs are significant in the financial world and there’s been a noticeable effort by several parties recently to get bitcoin-based ETFs. Major players such as CME and Cboe have bene calling for regulatory bodies to approve bitcoin-based ETFs, with some proposing the establishments of new regulatory boards to oversee cryptocurrencies.

When bitcoin futures were introduced at Cboe and CME in 2017, bitcoin prices soared even further. A similar announcement of bitcoin ETFs would likely generate the same interest and allow bitcoin prices to shoot up further once more. With some experts predicting bitcoin at around $20,000 by mid-year, this one is an important one to look out for.

2) Government Regulations

One of the biggest factors in how bitcoin is going to behave for the remainder of 2018 will depend on how governments react to the newness of blockchain technology and bitcoin itself, especially in the context of securities markets and their own economies. Strict regulation and taxation could lead the price of bitcoin dropping as it loses its attractiveness to those hoping it will spike by hundreds of points a day again. When countries such as South Korea announced their intent to crack down on any bitcoin trading, the currency lost a significant amount of value.

However, some governments seem to be building their own cryptocurrencies and are adapting blockchain technology rapidly. This show of faith in the technology is important as it shows the government recognizing the value of the system. Positive news like these are almost always tied to an increase in bitcoin value, so any news of regulation and its consequences are ones to look out for.

3) Ethereum And Other Cryptocurrencies

Ethereum is especially one making waves in the business world recently. As one of the only cryptocurrencies that didn’t drop consistently in the first quarter of 2018, Ethereum is on a path to set itself apart once and for all from most cryptocurrencies. It’s development of Smart Contracts has gotten the attention of many different investors and businesses.

There are changes currently in discussion in the community when it comes to Ethereum. One of its co-founders, Vitalik Buterin, has been suggesting a hard limit on how many Ethers can be in circulation at any given time, which is something that bitcoin has done successfully for the last few years. Other potential changes are to the currencies governance, which has the potential to make it more attractive to potential users.






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