In 2018, there were a number of events that affected the sentiments of the crypto market, supporting bears in most months, if not throughout the whole year. The oldest cryptocurrency suffered huge losses in 2018, dropping from the highest levels in December 2017 of $ 20,089 to the low $ 3,200 in December. And Ethereum even posted greater losses of -82.4%.
Here are some of the decisive events during the year:
• Japanese and South Korean regulators have taken action and imposed new requirements for crypto investors and exchanges, which led to a particularly unstable first half of the year.
• Continued the hate of China for cryptos, with the government banning investment abroad. In 2017 the government banned local ICOs.
• The SEC refused and then announced a review of its decision to refuse Bitcoin’s 9 ETFs.
• Following its summit in the summer, the G20 announced its intention to introduce a single set of rules and regulations for the crypto market. Ultimately, this was postponed until the summer of 2019, and while the delay would traditionally be positive in the market, this delay weighed on the SEC decisions for the ETFs.
• The Bitcoin Cash hard fork delivered unwanted market turmoil late in the year.
• More than $ 1 billion was stolen by the crypto exchanges during the year, with North Korea believed to be particularly active in the game.
• The SEC issued a statement earlier this year that only Bitcoin and Ether would not be classified as securities, categorizing all other cryptocurrencies as securities. Therefore, if ICO is not registered, it is considered illegal.
• The Token Taxonomy Act of 2018 was announced in December and can solve the problems faced by entrepreneurs who want to start through ICOs. This law seeks to classify cryptos as non-securities. But Congress will still have to vote for it …
Now when 2018 has passed, I suppose the questions “Will Bitcoin recover next year” or “Will Bitcoin reach to $ 2,000” are the most popular among the crypto community. Let’s shed some light on the future of the cryptocurrencies in 2019.
Among the many reasons for this bear market, analysts look at the fear of high taxes on digital assets. After Donald Trump signed the tax plan that made all of the crypto assets taxable, investors lost confidence in their own digital currencies, and this led to the sell-off of the entire market.
Ironically, the big banks see Trump’s actions as a major factor that will raise Bitcoin’s price higher in early 2019. After confronting the possible impeachment (yes, that is possible), Trump could have trying to gain public sympathy from declaring crypto-tax cuts. According to analysts, he has kept this ace in his sleeve for a long time after investing in Bitcoin back in 2017. He can plan crypto and block technology to make the ideal basis for trade relations between the US and other countries. This is why the Bitcoin price is expected to rise to $ 10,000 in February-April 2019.
However, happiness may not last long. According to the latest news, Iran, one of the countries accepting crypto, plans to use them to avoid US sanctions in June 2019. They will follow the approach of Venezuela and create their own currency backed by the price of crude oil. Iran will use it instead of the US dollar to conduct oil operations. If Iran does this, the US president may be disappointed. His further comments and actions are likely to drive Bitcoin to about $ 6,000.
In the short term, Bitcoin has started the 2nd day of the year in red, after another failure to break $ 4,000. This is likely to weigh later in the day. For the upcoming day, if the price could hold above $ 3,910, it would support a return to the high in the morning at $ 3,980 before the test again to $ 4,000. A clear break above that level will open the door to the next resistance around 4 100.
Failure to hold above $ 3,910 may send Bitcoin bears to testing $ 3,800.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.