One of the things that makes the digital currency bitcoin so intriguing is its ability to soar to new highs whenever a big announcement is made by the government or any central banker. It has done this so well that it has become known as “the bubble currency,” according to commentators. The news that the Federal Reserve may raise interest rates may cause a major uptrend in bitcoins, as traders expect a hike to the value of the digital asset. To get a better understanding of how and why this works, you will want to read this article.
During the past few years, the price of bitcoin has consistently climbed, sometimes rapidly and sometimes slowly. For the past year and more, it has been on a steady rise. This pattern is currently going into a new level: a new high. With the recent news that the Central Banks of several countries is considering easing monetary policy and creating more money to increase economic activity, it may be time for another major uptrend in prices. Therefore, it could be a good time to consider if you would be right in assuming that the digital asset is about to break out of its long-term downward trend and begin to make new highs in the coming months and years.
In fact, many people believe that the digital currencies like bitcoin prices have already hit their top for the first time ever. However, there are those who disagree, and they point out that the price target of the cryptocurrency is much lower than the previous high reached recently. This difference of opinion comes from the fact that some experts believe that digital currencies need a stronger foundation than ever before. Other analysts are not so confident in predicting price targets, because there has been no significant movement in the cryptocurrency over the past few years.
To arrive at a price target of $2.0 apiece, the cryptocurrency needs to achieve an average growth of about 14% over a four-month period. This average growth is considered to be the normal range of growth for most successful cryptosurfs. It also is much slower than the average rate of increase seen in some of the world’s other traditional commodities. The recent boom in the bitcoin trade has caused several other currencies to boost in value. For instance, the Canadian dollar has strengthened significantly against the American dollar in recent weeks.
Other countries like the United Kingdom and Sweden have taken action to curb the increase of bitcoin trades. This has forced the Australian government to institute new rules last week that limit the amount of digital currencies that can be owned by an individual in a given transaction. The move followed a recommendation from the Reserve Bank of Australia that states “there is too much risk from speculative trading and asset management”. This revelation comes just weeks after the Reserve Bank of India issued a similar warning to the country’s citizens about the dangers of investing in several types of alternative currencies.
The Reserve Bank of India also implied that there are risks associated with investing in the new highs and new lows of many of the major cryptosurfs. It warns, “Speculative activities may well be supported by illicit flows of money that are difficult to trace, especially from the point of view of the financial institutions that broker such transactions.” The warnings come as a stark contrast to statements made by Indian Reserve Bank of India Governor Raghukishmi during an interview on the sidelines of the World Finance Council in South Africa. In that interview, Raghukishmi indicated that there are no issues related to the decentralized nature of the cryptocurrencies. He indicated that investors should continue to invest in these currencies because they are the safest way to store value. He further stated that the Reserve Bank of India is not considering any moves to introduce measures that would ban all digital currencies.
Since the Reserve Bank of India has issued statements indicating that it will not intervene in the market to control the price of the cryptocurrencies, investors need not worry about a possible currency ban. However, there is no guarantee as to the long term impact of this type of activity on the value of the Rupee. According to estimates, investors have invested approximately INR 15 billion in the various cryptosurfs in India. There is a great deal of volatility in the trading and exchange rates of these digital assets. However, this has not dampened the popularity of these assets amongst the young investors.
According to industry experts, there is still a lot of potential in the future of the digital currencies like Dash, Zcash, Peercoin, Dogecoin, and Litecoin. This represents a significant funding for these currencies. In addition to this, there are several other lesser known but highly productive currencies being traded in the same manner. The biggest beneficiaries would be the investors who have bought Dash, XMR, PPC, or any other lesser known currencies, at the lower prices than the original market rate. These investors would then turn around and sell the Dash or other lesser known currencies to make a profit when the prices of these coins surge in the market.