Trader’s opinion: what awaits the cryptocurrency market in 2020? Part 1
The most significant event of the coming year for Bitcoin will be the award of miners in May. Traditionally, it is considered a trigger that can push Bitcoin and the entire cryptocurrency market to grow.
According to trader Pavel Gromov, author of the telegram channel “Main on Crypt,” everything indicates that 2020 will be very positive for the cryptocurrency industry and there are a number of significant reasons for this. This applies mainly to strong fundamental factors both in cryptocurrency and in traditional markets. The reasons for growth may be the following:
Approval by US regulators of the launch of Libra
Amid China’s recent announcement of the start of testing of state cryptocurrency (CBDC), the United States is likely to take measures to confront its eastern opponent in this matter.
Since there is already a Libra steablecone project that can be used by more than a billion people, it will be wiser to create a counterbalance based on it, or take state control and strict regulation of the project, which will significantly save the US administration time and resources. However, this requires permission to start the token. In any case, the issue remains open and will be resolved during 2020.
The influx of mass of new participants and new money into the cryptocurrency market and the general wave of positivity can bring the launch of the TON project. According to lawyers and project representatives, the ban through the court on the distribution of Gram tokens, which the SEC achieved, has no basis, since ICO TON was carried out in strict accordance with US law.
Nevertheless, the issue will be resolved in court in April 2020. There is a possibility that the parties will eventually come to certain agreements, especially since there has already been a precedent. Earlier, the EOS project was fined $24 million for conducting an unregistered ICO and, despite disagreeing with the regulator, the company paid a fine and the issue was settled. In fact, nothing prevents the TON project from going the same way: paying a fine and closing this issue. Aggravation of the trade war between the United States and China Mutual sanctions and trade duties between the two economies of the world since 2018 did not allow the stock market to update price highs and when negative news appeared from the political scene, markets periodically impulsively decreased. It is likely that these events served as a trigger for the growth of cryptocurrencies in the first half of 2019. Now relations between the countries have normalized, but this does not mean that the issue was finally and irrevocably resolved. We have already witnessed how, after speeches on reaching agreements, both sides continued to impose duties. Trump will seek parity in trade relations with Beijing. Once peace and friendship are replaced again by trade and currency wars, investors will leave the stock markets and look for an alternative to them.