Ethereum News Update
On Tuesday, Ethereum prices continued to falter as investors rotated funds out toward fiat currency. ETH prices dropped 11.4% against the U.S. dollar, bringing the ETH to USD rate down to $947.05.
It wasn’t pretty. But there’s some hope on the horizon because…it’s Davos time again.
Every year, the global elite gather in a tiny Swiss town (of all places) for the World Economic Forum. The fabulously wealthy rub shoulders with the inordinately powerful. Billionaires are a dime a dozen, and all the while, 10,000 local Swiss try to ignore the whole event.
For all its absurdities, though, Davos is still the place of “high finance.”
World-changing decisions are made on the ski slopes or at fireside chats. That’s why it is important to stay abreast of what happens concerning cryptocurrencies.
There are two events I’m paying attention to:
- The Remaking of Global Finance: January 25, 2018, 10:00 GMT
- The Crypto-Asset Bubble: January 25, 2018, 17:00 GMT
Both panels are stacked with heavy hitters. Christine Lagarde, the head of the International Monetary Fund, is on one of the panels, and Nobel Prize-winning economist Robert Shiller is on the other. Both of their words carry weight.
Ethereum Price Chart
Lagarde’s opinions are particularly important. Her organization is starting to coordinate international standards for regulating cryptocurrencies, which means that anything she says could translate to actual policy.
But even more important than public meetings are…you guessed it, private ones.
For example, there’s the famous “IGWEL” meeting (Informal Gathering of World Economic Leaders) that takes place in secret. It brings together finance ministers, a handful of Wall Street titans, and other power brokers.
According to legend, IGWEL first spawned the idea of the North American Free Trade Agreement (NAFTA) and brought it to life within a decade. That’s the kind of power we’re talking about.
So, stay tuned. I’m going to be reading between the lines of press releases, tracking social media accounts, and trying to gauge where global regulation goes from here.
My prediction is that regulators will move against cryptos that threaten national currencies, like Bitcoin or Litecoin. However, I think that platforms like Ethereum will actually receive a lot of public support and favorable coverage, which could reinvigorate price growth.
We still maintain our $1,500 Ethereum price forecast for 2018, with an eye to further upside.