A pril 2021 fundamental correction of the cryptocurrency market. Positive signals for future growth in the cryptocurrency market.
Over the past week, there were three major events that have corrected and, as a result, will have a positive effect on the cryptocurrency market. If you look at the charts, news, and one-day you tubers who mainly add their analytics within the frequency of the release of their new videos, and this is a day or two, or at most a week. At first glance, it may seem that there has been a trend reversal and a draw-down in Bitcoin and other alt-coins, but if you analyze more deeply, it becomes clear that this is only a temporary correction, and it should and will be on a bullish trend in 2021. Therefore, experienced investors will only buy additional assets and become even richer, while newcomers will lose their money in a panic. But both the first and the second will still have many chances to multiply their assets many times in next decade.
What are the black swans signaling to us:
1. The hashing power of the leading Bitcoin mining pools has dropped sharply due to a power outage in China’s Xinjiang province after a mine flooded. Cheap electricity in China has concentrated mining in one place and thus endangers the stability of the market. This signal made it clear that it is impossible to concentrate mining in only one place, and put the blockchain, the main idea of which is privacy and decentralization, in depending on technical issues. This event prompted many miners to develop more branched and scattered mining objects around the world. It’s a big step towards stability.
2. The Thodex cryptocurrency exchange has stopped trading without prior notice. The money of about 391,000 active traders of the site is not available for withdrawal, and the founder of the exchange left Turkey. This event will launch a mechanism to improve fairness in the market and will also increase the caution of newcomers and investor confidence in large reliable exchanges.
3. Joe Biden raised capital gains tax for wealthy investors. This is a very significant event. Up to 44% will now have to pay to wealthy Americans who are engaged in cryptocurrency. Of course, there will be a restructuring of assets and many investors will be engaged in restructuring of portfolios. But what does it give to the market as a whole. The first is the legalization of cryptocurrencies. Millions of new investors will come to cryptocurrencies knowing that they will now pay taxes and will be completely clean before the law. And second, again, decentralization, as many American investors will start investing abroad, in countries with more simple taxation, which will invariably lead the market to growth.
In conclusion we can remark that the cryptocurrency market is only stabilizing and developing, all events that take place only give signals for strengthening and new solutions for updating of new useful ideas for the cryptocurrency World.