With the longest recorded bear market in history, cryptocurrency prices are in for a terse competition. Bitcoin price tested murky waters in 2018, it has been predicted by several analysts and traders alike that in 2019, ETF approval and the launch of Bitcoin futures will bring some much-needed relief. The crypto debt market and credit networks will see bright light with projects like Nexo and Maker DAO marking staggering growths. Let us have a look at trends which will rule cryptocurrency prices in 2019.
Rise of Decentralized Exchanges
It is not a false fact that cryptocurrencies market place needs a wider user base. While there is no limit to decentralized exchanges they have not been able to reach their true potential owing to poor usability and exorbitant costs incurred in developing them.
However, in the year 2019, it is expected that users will be able to make deals without any presence of third parties using their private wallets. This will directly impact cryptocurrency prices as more users will be willing to invest in crypto assets.
Also, this will lead to a massive increase in trade volume, which is predicted to be 50% and will positively impact Bitcoin price and other altcoins uptrends. As per data by CoinCheckUp, more than 3/4 of the worldwide crypto trade volume will be controlled Binance, Bitfinex, Huobi, Bittrex, and OKex.
STOs and IEOs to supersede ICOs
It is not an unknown fact that ICO market suffered heavy losses in 2018 and investors backed off funding the utility token model. Moreover, the ever-increasing legal and compliance costs are a deal breaker in all manners. However, with Security Token Offerings backed by real-world assets like bonds, they are the next target for investors and traders alike.
Also, much to the developer’s delight, IEOs or Initial Exchange Offerings are count in for easier participation. The developers can take total advantage of the existing user base of the exchange. With the exchange affirming the reliability of the project, investors can be assured of this being an investment worthy project.
Lastly, investors need not worry about them being listed on exchanges, as they will carry out thorough research before initiating an IEO.
All in all, this will be advantageous for cryptocurrency prices as it will lead to more demand among investors. Also, with high Bitcoin dominance and prevailing market trends, Bitcoin price might display some spectacular trends in 2019. However, as the popular saying goes, “ Once bitten twice shy”, the crypto market will still need to evolve on a higher level to gain the trust of traders and investors again.
Improved Scalability to Positively Impact Bitcoin Price
With scalability a major issue with blockchain, it is not wrong to concur that it negatively impacts cryptocurrency prices. However, Bitcoin’s off chain technology Lightning Network will be a game changer. With cheaper and faster transactions and the launch of atomic swaps, not only will the Bitcoin price be impacted, it will shift cryptocurrency prices on a whole new level.
dApp Development to Bolster rise in Cryptocurrency Prices
With mainnet launch of blockchain platforms like TRON and EOS accompanied by a steady in dApp platform is a clear indicator that cryptocurrency prices will rise with these developments. TRON recorded a weekly surge of 5% recently when it launched few of its many dApps in January. Interestingly, analysts believe that such developments can be helpful for Bitcoin price as well, as overall it will lead to greater faith in the crypto market. However, the possibility of a decline in altcoins cannot be disregarded altogether.
Lower Price Volatility
While Bitcoin price experienced high price volatility in 2017, the price volatility in 2018 was more subtle. Moments of sudden price fluctuations were quite a few. The year 2019 is likely to see more price stability than in previous years. This is noted to be a good sign it will pave way for more institutional investors. In addition, to bolstering crypto adoption and ultimately positively impacting cryptocurrency prices.
Also, crypto margin trading will see a significant drop in 2019 as traders will trade only when necessary having become a lot wiser from previous market fluctuations. Well, 2019 will be a mixed bag for cryptocurrency prices. Time will be the best judge for deciding whether the crypto market adds more investors or sets off to establish another set of trends.