Top 3 Trends in Cryptocurrency Markets

Interpreting Trends in Cryptocurrency Markets

Cryptocurrencies are notorious for their volatility. One minute, a coin can be skyrocketing in price – and the next minute, it can crash harder than ever before. This is partly due to the ever – in creating presence of algorithmic traders based on input parameters. Because one set of parameters can be influenced by a single trade, that can instantly set all the overall trends followed by institutional investors. These are the big money leaders, who will invest tens of millions at a time when they sense the opportunity is there, spotting these trends could help you understand exactly when it’s right to invest or sell a position. Here, you’ll find three market trends that may serve as unique indicators for further investments.

1. Security Token Offerings

As cryptocurrency emerged as a leading opportunity for investment, more currencies began to pop up that utilized the blockchain for some novel technology. To entice new investors, those currencies offered initial coin offerings (IC0s) as a way to fund the company and secure a stake in that technology. However, ICOs quickly came under fire due to illegitimate companies finding ways to exploit these strategies to get cash infusions.

That’s where the token offerings, or STOs, came into play. Since institutional investors want to make investments without risking a complete lose – a possibly with unregulated ICOs – financial regulating bodies have proposed to make some new currencies more occurring. These regulations must be complied with in the United States for an STO to occur, each detailed by the SEC. STOs are developed for the blockchain and may likely serve as a strong upward market trend.

2. Decreasing Volatility

Bitcoin gained mainstream popularity when its price jumped over $10,000 per coin of news articles with each piece jump. But this was extremely volatile time for the coin: every hour, the price fluctuated massively, leading many investors to write it off as an unstable investment. This issue of instability in price plagues cryptocurrencies, as traditional investors are constantly looking for opportunities that will slowly increase in price over many years. That’s why the decreasing volatility of cryptocurrencies could be seen as a positive trend, as more investors will be willing to make a contribution if the price is relatively stable and increasing overtime. Note that this may not necessarily apply to lesser – known cryptocurrencies, though there is a chance that a spillover effect from Bitcoin to these currencies may occur.

3. Venture Capital Interest in blockchain

Perhaps one of the strongest market indicators is the amount of venture capital investment being put toward blockchain or cryptocurrency – related businesses. Generally, venture capital tends to be the riskiest investment type, but also tends to be the mosr forward – thinking. If you want to predict Crypto Price Trends, this article is helpful:

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