The year 2019 has come to nearly at its end. With only one month to go, it won’t be early to analyze the crypto market for the whole year. Market capitalization was great the whole year as it increased by 125%. However, the cryptos have faced the brunt of the market. Most of the cryptos like BTC, XRP, ETC are in the red region and the trend continued throughout the year. The crypto exchanges had a great deal of hand in these crypto prices. With every new upgrade in a crypto exchange, the respective coin/token is affected.
Factors That May Affect The Cryptocurrency Exchanges
Let us first understand some of the factors affecting the crypto exchanges in 2020:
Us-China trade war
The US-China trade war will have an everlasting effect on the crypto market. With the trade war going on now for more than a year, the liquidity is said to increase further.
The World GDP rate has decreased considerably in 2019 due to this trade war. However, the rate is supposed to increase in 2020. It might be beneficial to the crypto exchanges along with other industries.
Libra Ventures in Market
Libra stablecoin is scheduled to launch by end of 2020. Since Libra has been introduced, many countries like China, Bhutan, EU, Canada have come forward to launch Libra like stablecoin. As a result, crypto laws and regulations are being standardized and strict policies are being applied. The crypto-exchanges are evolving as per the laws. For instance, Binance shut down its US support and opened a Binance.US, especially for US clients. Similarly, many changes are coming forth in many exchanges.
China has recently approached blockchain adoption in a new light. President Xi took the crypto world by storm with Blockchain Adoption speech. The result was Bitcoin price increased by 30% following the news. Other countries are following suit with South Korea confirming adopting blockchain.
Bitcoin and Other Altcoin Halving
Bitcoin Halving is considered to be the biggest event in terms of cryptocurrency. The price of Bitcoin is bound to increase. This will prove to be another positive sign for crypto exchanges as more people will buy and trade BTC and ALTS on the exchanges. Others like Bitcoin Cash will undergo halving in 2020 too.
Crypto world is looking forward to the launch of Cryptocurrency ETF in the US. A crypto ETF will work similarly to any other ETF (Exchange-traded fund). An exchange-traded fund (ETF) is a type of security that involves a collection of securities that often tracks an underlying index. In crypto ETF, digital tokens will be traded in place of stock. In the US, the SEC has indicated that it will not approve cryptocurrency ETFs until the markets demonstrate a degree of stability and security. However, Coinbase exchange has its own index fund somewhat similar to an ETF.
What This Means For Exchanges
Let us study some of the crypto exchanges to understand how the crypto market will fare in 2020.
- Binance Exchange – The first and foremost exchange to be considered is Binance. With an update every other day, this particular exchange has a critical part in altering the crypto market. Coming to 2020, Binance has a lot of updates in the making. As per the Binance roadmap for 2020, Binance is set to diversify its exchange based on geographical regions. As of now, Binance.US is excelling. Binance Uganda has KYC and payment structure modifications.
- Poloniex Exchange – With dozens of crypto assets to choose from, Poloniex is an obvious choice of crypto exchange. Recently the exchange has entered the Asia Pacific region and is in talks to conquer the global market.
- McAfeeDEX – A new exchange in the market but John McAfee is leaving no stone unturned to excel his decentralized exchange McAfeeDEX. Recently, the exchange got listed on the TRON network which in turn affected TRX prices. The McAfeeDEX has plans to extend and add multi-currency support. John McAfee plans to make McAfeeDEX similar to Binance, but free.
With all these upcoming changes, the crypto exchanges are bound to abide by new rules. It is safe to say that the future of cryptocurrency and its exchanges are safe. 2020 is already looking to be a good year for exchanges. There might be a few ups and downs as with any other year. But in the end, one thing is a certain cryptocurrency and its exchanges are here to stay.