Cryptocurrencies have received considerable scrutiny from both academic researchers and market practitioners alike. Cryptocurrencies could amplify contagion dynamics within traditional markets and be potentially used as a way of driving flight-to-safety moves threatening financial stability (Gubareva et al. 2022).
Results show that, with the exception of XRP, cryptocurrency markets are net pairwise transmitters of shocks to Bitcoin (BTC). As evidenced by one-day lag cross-quantilogram heatmaps shown in Figure 5, these transmitters of shocks include all cryptocurrencies other than XRP.
Bitcoin
Bitcoin is the premier cryptocurrency and its price is widely influential on other assets on the market. But as with most volatile assets, its price fluctuates quickly from day to day depending on investor perception; any small shift can have dramatic ramifications for its price.
Industry experts have differing projections for Bitcoin’s future prospects. Some believe it will become the world’s primary currency; others see other cryptocurrencies posing competition against it.
Regulatory Uncertainty: Governments around the world are still deliberating over how best to regulate cryptocurrencies, leading to periods of extreme volatility and regulatory indecision.
Ripple
Ripple is a cryptocurrency that utilizes blockchain technology to facilitate international payments. Banks and financial services firms rely on it for international payments, with its native token XRP used for faster currency conversion. Furthermore, Ripple has raised millions in funding.
Ripple stands out from other cryptocurrencies by having a singular focus, making it safer and more likely to reach $10 in 2023.
Future prospects of Bitcoin depend on various factors, including its global recognition and adoption rate. Because its price volatility makes it highly speculative investment, investors should only commit money they can afford to lose and diversify their portfolio to limit risk.
ETH
Price movements in Ethereum have been relatively volatile of late, making its future uncertain. Yet as an asset relatively new to the market, ETH holds great promise of becoming highly valuable over time.
ETH will undergo various upgrades, with some more immediate than others (like transitioning to proof-of-stake) taking place this year. These enhancements will improve both security and performance on its network.
As it’s difficult to accurately forecast Ethereum’s price in the long term, but it’s possible it may reach $100,000 per ETH by 2030. While this would be an enormous achievement, investors should remember that cryptocurrency prices can be unpredictable and volatile; as a result, prior to making any purchases they should always conduct their own due diligence and research before investing.
LTC
Litecoin has become increasingly popular as an investment and trading cryptocurrency due to its dependability and low price point, making it attractive among investors and traders. There have been no major exploits so it remains an extremely reliable coin with limited supply and issuance restrictions making it highly sought-after among traders and investors.
Litecoin’s price can be affected by market forces such as regulatory news and the actions of large holders known as whales – large holders who may sell off their coins to take advantage of favorable market conditions or in order to prevent losing them altogether.
LTC’s value can also be affected by its network activities; for instance, Mastercard could increase adoption and boost cryptocurrency’s value, while an increasing hashrate demonstrates network expansion and can indicate future growth prospects.
DSH
DASH coin is often considered one of the main competitors to Bitcoin; however, this isn’t actually true: DASH’s demand depends heavily on investors’ speculative expectations. DASH cryptocurrency cannot be controlled by state officials and it seems unlikely that this situation will change soon. Furthermore, other privacy-centric cryptocurrencies like Monero and ZCash are becoming more widely popular and eating away at DASH’s market share. Dash’s exchange rates to USD are relatively low on major platforms such as OKEx and Huobi; however, its usage remains popular on smaller, local exchanges. Unfortunately, these factors could limit Dash’s future prospects; nonetheless, the cryptocurrency has yet to become a mainstream payment method – though its journey is certainly worthwhile!
