Anusorn Thammajai of the Bank of Thailand predicted that the block-chain aided digital cryptocurrency will create havoc in the month of March this year. The liquidity-factor is low during that period in the business-world and financial market due to the financial year-end in many countries and quarter-end in other countries. The cryptocurrency bubble may burst during that time.
The former bank director also mentioned that many players in the crypto market lost greater than 40% value in the current year.
Digital currencies are becoming popular, and most countries are looking for ways to legalize the crypto market & forming laws and regulations around it. Thammajai appreciated the move of the Thai government to tax crypto dealings and finding ways to stop money-laundering through crypto transactions.
Ways to tighten the law
Thammajai feels that the rules and laws around cryptocurrencies should be tightened. In January this year, the Government of Thailand announced that they will control all crypto transactions to keep an eye on illegitimate financial transactions and terror-funding.
As a thumb rule, be it crypto market or share market, it crashes about three-four times in a year in any country. Whenever there is political turmoil, war, elections, or any major acquisition or scam, the stock market of that country takes the beating. The smart investors remain invested and take the blow, and the ones who get into trading during volatile situations often incur losses.
The same goes for the crypto market. The bubble might burst in March this year, however, if one is a long-term crypto investor, they should not bother much. They might take this warning in a positive way and get rid of the non-performing cryptocurrencies from their respective portfolios.
