Will Cryptocurrencies Face Another Bull Run?
A bullish market is when prices soar up and it seems like a commodity, or all commodities are thriving. In the case of cryptocurrencies, the market has been bullish for a while now. As is the case with all bull runs in the market, there is also a downside to it, a bear run.
In the recent months, there has been some negative speculation about cryptocurrencies, and investors have seen the prices drop. However, things have stabilized now, which has opened up the currency to a new round of speculations.
When is the next bull run?
As of now, the NYSE is planning to get into cryptocurrency trading, and this brings the cryptocurrency out of the open market and well within a regulatory framework. The NYSE is the world’s largest stock exchange and is valued at $23 trillion that is over 100x the estimated value of all cryptocurrency.
When such a platform says that it plans to open a crypto trading platform, then everyone would like to get in on it. Now, in order for an established trader to take on crypto trading, they have to have in their possession the asset itself. Setting up a trading platform is one thing, however, in order for users of the platform to have an actual gain, there needs to be a repository of cryptocurrency in the possession of NYSE.
Why will a bull run happen?
There are a number of reasons the market sees a bull run
- Positive speculation – trade pundits telling investors that putting their money in a specific commodity will benefit them and it leads to a buying spree thereby driving up prices
- Positive political events – a lot of people firmly believe that when there are successful elections (aka a popular decision) the markets reflect the mood. A good run at the exchange means that the political outcome is approved by the industry.
With the announcement of a regulated trading platform that is owned and operated by an industry leader, Bitcoin has gained acceptance and more people will invest in it now that there is a recognizable platform for it.
A lot of people miss the fact that cryptocurrency has been a bit of a grey area all over the world. Governments have issued bans, and are cracking down on illegal transactions. If the NYSE goes through with its ETF as well as trading platform, cryptocurrency will gain the approval of the establishment as well be inducted into the mainstream.