Analysts 'and market experts' opinions
the cryptocurrency received a new wave of interest, several factors led to this. First of all - May halving. In May, the miners' reward for mining BTC was cut in half, information about which was actively searched by Google users. As a result of halving, the rate of coin entry into the market decreased. If the demand for digital gold persists, this should lead to an increase in its value, writes RBC Crypto. Bitcoin has also become a defensive asset. Bloomberg analysts came to this conclusion in April, explaining that due to increased interest in BTC futures and a decrease in volatility, the coin is losing its speculative component. In addition to this, large investors began to invest in BTC. For example, in May, billionaire and founder of hedge fund Tudor Investment Paul Tudor Jones invested $ 50 million in the first cryptocurrency, and in August, the Canadian restaurant chain Tahini's announced the transfer of all its cash reserves to BTC. The most recent example of growing confidence in cryptocurrency is the analytics software company MicroStrategy. On September 15, its head Michael Sailor announced on his Twitter account that the firm increased its BTC investment by $ 175 million, to $ 425 million. Immediately after that, MicroStrategy's stock quotes rose 23% to $ 176, although by the current moment they have dropped to $ 163 ... There are two reasons why bitcoin began to strengthen in the status of a defensive asset: Such measures lead to a depreciation of the currency. This is proved by the DXY index, which shows the strength of the dollar against a basket of other national currencies. In March, during the fall in all markets, this indicator rose rapidly from 95 to 102 points. This reaction was caused by the fact that investors around the world were buying USD as a defensive asset. But then the DXY value began to decline and by the current moment dropped below 93 points. As the dollar depreciated, bitcoin rose in price, analyst Omkar Godbowl drew attention to this in August. He suggested that an inverse correlation was formed between BTC and USD: investors began to look for alternative defensive assets in order to save capital from the depreciation of the American currency. The gradual weakening of the dollar and halving are only two factors that speak in favor of the rise in the price of bitcoin. There are others. Crypto industry experts told what reasons are there to invest in cryptocurrency right now and how likely a decline in its rate is. Senior Analyst Bestchange Nikita Zuborev. There is a point in buying bitcoin now if you are ready, firstly, to risk the invested amount, and secondly, not to touch the investment for more than a year. Based on a combination of factors, in the future, we can count on updating the historical maximum of the coin price of $ 20,000, set in December 2017. The most important reason is the endless emission of the US dollar, which was exacerbated during the pandemic. This increases inflation in the world's main currency. Against this background, financial instruments with limited emission look more attractive - bitcoin and gold win in this indicator. On the positive side, the hashrate of the Bitcoin network continues to hit highs. This may mean that miners are confident in the long-term strengthening of the cryptocurrency rate. For example, next weekend the next adjustment of mining difficulty is expected by 10-11%, and the computing power only continues to grow. The reason for the local rise in popularity and growth in the volume of the crypto market is the hype around the decentralized finance (DeFi) market. Traditionally, it has not been without media that stir up interest. But do not forget the story: in the event of a sharp loss of interest in DeFi, the market situation may turn sharply, and technical analysis, even without this, allows a fall to the level of $ 8,800. For comparison, ICOs could not hold out in the phase of active growth even for a year. Neutral-negative in the short term is that futures trading volumes on the Chicago Mercantile Exchange (CME) have recently been breaking records. This, in turn, strongly constrains the growth of prices. On the other hand, such a limiting instrument increases trust from large investors, which has a positive effect on the future of all cryptocurrencies. Dmitry Lavrov, trader and founder of Tradeunity. It makes sense to buy cryptocurrency today for a number of reasons: I don't think we'll see any significant drop in the market. Sideways movement, corrections - all this is a component of the global uptrend. There is currently no reason to change the bullish pattern to anything else. It makes sense to invest right now and buy more when pullbacks from important support levels. Private trader Alexander Boyarintsev. I think it's worth investing right now. By all measures, we see that, indeed, bitcoin is at the beginning of growth. And the first reason is that institutional investors began to enter the crypto market.