After several weeks in the red, the crypto market is back. Bitcoin has seen some major gains, pushing from lows of $7600 to its current price of over $8900. This bullish run has largely been driven by news that the G20 won’t be calling for any stricter regulations, against the crypto markets, at least not at the moment. This is a major vote-of-confidence for the crypto market, at a time when the market has been hit with all sorts of bad news. The latest one being Google’s decision to ban crypto related adverts. So what can crypto investors expect, now that the G20 has given this market a nod?
One of the implications of the G20 decision to treat cryptos as an asset class is that individual nations will institute friendly regulations, which will foster the growth of this new asset class. This is likely to attract institutional money into this space, significantly pushing up the value of many cryptocurrencies. Just to give you context on the impact of institutional money, you just need to check out bitcoin charts in November 2017, when the CME announced the possibility of a bitcoin futures market. The price of bitcoin shot up in an unprecedented manner, hitting a high of $20,000 in December. Similar things are likely to happen to many other cryptos thanks to market regulation.
We are also likely to see a decline in scams in crypto space. While there are many successful ICOs hitting the market, a similarly high number of them are scams. In fact, the upsurge of scam ICOs is what has necessitated internet companies like Facebook and Google to take measures against crypto advertising. Luckily, with this move by the G20, such drastic measures will no longer be necessary. We are likely to see a situation where one has to follow legally laid down procedures, before launching an ICO. Just like it happens with IPOs. You can’t just wake up and launch an IPO into the stock market. You need to meet certain regulatory basics that are designed to protect the interests of investors. Once such regulations are put in place, we are likely to see an upsurge in investor confidence in crypto, and a new bull-run, probably bigger than the 2017 bull-run.
For those who got caught up in the market in December and are in deep losses, this move by the G20 is welcome news for you. There is a good chance that you will break even in coming months, and even make some more on top of it. For new investors who have been sitting on the sidelines, this is a great time to invest, before the market heads to the moon. Overall, it’s an interesting time to be in crypto.