If you see millions of investors, speculators, and crypto hobbyists have bought and sold cryptocurrency in the past decade or so, hoping that crypto would be both a powerful investment and a currency of the future. As a result, the cryptocurrency market is booming.

 Bitcoin, the most recognizable crypto name, has increased from a low point of around $5,000 in March of 2020 to a price of more than $51,000 as of the time of this article’s writing. Rival currencies, including Ethereum and Litecoin, have emerged as realistic competitors – and even meme currencies like Dogecoin are still floating around. 

On top of that, a growing number of merchants are accepting cryptocurrency as a form of payment. Nearly a third of all U.S. small businesses currently accept crypto as payment – and that number is consistently growing. Crypto optimists suggest that this is the natural momentum and that it’s only a matter of time before crypto becomes truly mainstream.

1. Watching the Signals

First, what do we mean by “momentum,” and what could really bring it to a halt? Most investors will tell you that price is the most crucial variable, and they definitely have a point. The price of an asset is typically a good signal of both trading volume and consumer confidence; the more faith people have in a given asset, the further its price will rise.

2. New Regulations or Laws

New regulations or laws could have a pronounced effect on public faith in crypto. Most developed countries of the world are agnostic on crypto, and some have even created their own cryptocurrencies (more on that later). But some countries have outright banned crypto trading for their citizens.