Can Anyone Predict the Trend in Cryptocurrencies?
While there isn’t yet a consensus on how to predict the future of cryptocurrencies, there are some predictions that have become reality. A recent study by venture capital firms revealed that they invested $30 billion in crypto this year, a staggering amount of money compared to all other forms of investing. The same study revealed that 62% of institutional investors intend to take the crypto leap within the next year. Whether this will happen is another question, but it remains to be seen.
There are some general patterns that crypto markets follow. These patterns help predict market behavior. Generally, cryptocurrencies move up and down in a consistent pattern. These patterns are called trends. These trends are based on the primary movement, which can be a year or more. They can be either bullish or bearish. The second type of movement is called a medium swing, and it takes place in the medium timeframe. The trend in the medium swing is based on the primary price change.
While the current consensus is that there is no one supreme digital currency, experts are predicting that there will be many cryptocurrencies. However, the most prominent ones are Bitcoin and Ethereum, which each have a market capitalization of over $100 million. It is still difficult to forecast when the next major trend will be, and cryptocurrencies can be very volatile. Nonetheless, it is a good time to get started with crypto.