There is a rather downcast aura hanging over the crypto market at the moment and it feels as though the market as a whole has lost a little momentum in the wind down to Christmas. New Year though promises to bring a much rosier outlook to the cryptocurrency market and we have picked 3 things that are going to be big news next year – alongside one that won’t be that great!
Bitcoin Halvening Event
There is a halvening event on the horizon where the reward for mining Bitcoin is halved for miners. Historically this has had a mixed reaction on the market and the 2020 halvening will no doubt have some impact.
Things to watch out for with the Bitcoin halvening;
- Hype and price rises going into the event
- Likely little movement on price at the time of the event
- Normally the halvening precedes a gradual increase in value over a number of years.
This one is the cryptocurrency event that might not be so great for the wider market. Down but not out, Facebook are still pushing toward a 2020 release of Libra despite a wave of controversy and the token being classed as a security which puts severe restrictions on it by US regulators.
This is more of a one to watch and see how the story unfolds as it really remains to be seen how much impact Libra can make now that it is well and truly shackled.
Ethereum May Lose Second Spot for Good
You may think this is bad news but in actuality it will probably be largely positive with renewed interest in altcoins and belief among investors that by choosing a cryptocurrency they believe in they can be rewarded. Ripple is having issues of its own and may not be the giant killer in this scenario – it could well be tether which has made tremendous gains in the short time it has been available.
Watch for any early indications of sell offs from Ethereum investors and track where that money moves to.
More Scrutiny Creates a Safer Market
By and large market volatility is seen as a means to make huge profits instantly but is also bemoaned by investors who can’t predictably track the cryptocurrency market. This has meant although the word regulation instils a little dread – mostly it is well received across the market as a means to make cryptocurrency more investor friendly.
But beyond regulation, a lot more currencies are being heavily scrutinised and gone are the days of hype and blind faith in newly launched cryptocurrencies. Instead the market is maturing and investors are beginning to really investigate the claims of developers and this is a great thing!
Scrutiny means that developers will feel a degree of pressure that they’re accountable and that means that cryptocurrency will be less of a fringe economic endeavour and potentially become the mainstream juggernaut we are all hoping for.
What are you looking forward to in 2020? Cryptocurrency certainly looks a bright place to be in the New Year!