Every four years, the fourth quarter saw an explosive rise in the price of bitcoin. For example, in 2013, the value of the first cryptocurrency soared 481% in three months, from $132 to $767, peaking above $1120. And in 2017, bitcoin saw a 225% rise, climbing from $4,300 to $14,000 from October 1 to January 1, setting an all-time high of $19,400 on December 17.
"It all depends on the mood of regulators."
Bitcoin and other cryptocurrencies may well go up in the fourth quarter of this year, if there is a favorable environment for it, said the head of the analytical department of AMarkets Artem Deyev. However, the possibility of a correction of the stock market (the prospects of such an event are growing every day, as high inflation in the U.S., which will force the Fed to more quickly curtail monetary policy) - is also a danger for digital assets, the expert warned.
"If a correction in the stock market starts, bitcoin and other currencies will start to sag along with them, which has already happened more than once this year," Deyev said.
He named another factor that could have a negative impact on the market: the Federal Reserve (Fed) is preparing to consider the merits and prospects of introducing its own digital currency in the U.S. That means the U.S. could see the same large-scale attack on the cryptocurrency market as China, Deyev said. Crypto-assets that are not regulated by the Central Bank are becoming a serious tool for tax evasion and are competing with the digital dollar (which the Fed is likely to introduce into the country), he said.
"Everything for the market depends on the mood of the regulators, on news regarding increased regulation. If these events do not happen, bitcoin may well gradually increase in value and reach the highs of the beginning of this year," the expert predicted.