What’s next for cryptocurrencies?
After gaining in the first week of the year, the price of cryptocurrencies has started to cool. Bitcoin remains slightly above the $4000 mark while that of Ethereum remains near the $150 level. This comes as investors consider the next stage for digital currencies.
Recently, major developments have happened in the industry. In December, it was reported that Facebook was developing a stablecoin that will help it monetize WhatsApp. The coins, which will be backed by the USD, will be integral in Facebook’s future because it will lead to revenue from WhatsApp, which it acquired for more than $20 billion. To date, the company has not been able to monetize the platform.
Tokenization will also play a more prominent role in trading. For instance, investors will be able to trade assets over the weekend when the markets are closed helping to remove limitations. Another advantage of this technology is that it will help investors to trade illiquid assets like real estate.
The current cooling of crypto prices could be the calm before another storm. In the past, such prolonged periods of little or no movements have led to major movements. For example, in October last year, the price of cryptos was not volatile. A month later, the prices crashed by double digits. Therefore, with the ETH/USD pair trading at the 148 level and with no volatility, the price could see some major movements. As shown, the Average True Range remains at significant lows while the RSI is unchanged.