👀 The market will witness significant changes this year with regulations planned for the cryptocurrency market 👀

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Cryptocurrencies have been in a gray area for a long time. The main point of discussion when it comes to cryptocurrency regulations are Memecoins such as $SHIB , $PEPE , $BONK and others which have always had great volatility, giving both great opportunity for large gains, but also risks for big losses. 

Memecoins carry some inherent risk. Investors tend to flock to lower cap memecoins which promise larger gains, but the FOMO (Fear Of Missing Out) can get the best of them and lead to irrational or investing based on impulses. 

Since a lot of people have lost money and can easily lose money if they don't pay attention and analyze the risks, it is becoming increasingly obvious that the market requires regulations to protect investors. This is also a necessary step so that the market can continue its evolution and mainstream adoption since we live in a society and this means that everything should follow at least *some* rules. 

In Europe, the MiCA legislation (Markets in Crypto Assets) will bring forth significant changes. Parts of this reglementation will start applying in the short term, while other parts will apply starting with the end of the year. 

This can have significant effects on the market, but it's hard to predict how the market will react to these changes. It is possible that liquidity will transfer over more established coins with a solid reputation (or at least, some reputation). 

The opposite can happen as well: we may witness a downtrend in the market, although I expect this to be short term. As usual, we have to think in larger timeframes about what this means for the market. While we may witness some decrease in volume, on the long term these regulations will provide the necessary "safety net" for traditional investors to bring forth more liquidity into the cryptocurrency market.