Bitcoin may hit $ 65,000 in the near future
Bitcoin volatility goes off scale after setting a price record
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At the beginning of January 2021, bitcoin updated its all-time high, approaching $ 42,000. However, many market participants, including the co-founder of Fundstrat Global Advisors, are sure that this is not the limit. Russian experts also adhere to bullish forecasts. How much bitcoin can cost and is it worth investing in this asset, BeInCrypto asked the CEO of the KickEX cryptocurrency exchange Anti Danilevsky.
Anti, Bitcoin has been recognized as the most profitable asset in the last 12 years. The price of the cryptocurrency went up and down. What to expect from the military-technical cooperation in the near future?
HELL .: One of the most popular phrases in trading is “history repeats itself”. Indeed, now, in general, we are seeing a repetition of the situation that took place at the end of 2017, when bitcoin, after updating its historical highs, showed another cycle of rapid growth. At that moment, the number of searches on the topic of bitcoin and cryptocurrencies was off the charts, various well-known persons commented on their investments in cryptocurrencies, and novice investors were looking for options to invest their fiat money in cryptocurrencies as profitable as possible..
Along with the rise in the price of bitcoin in early January, the volatility of the cryptocurrency increased sharply. How it will affect the market?
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HELL .: Indeed, with the rise in the price of bitcoin, the volatility of the market has also increased, which can ultimately lead to a slight pullback in value. However, this is quite normal for the cryptocurrency market. Again, you should pay attention to the history of the formation of the market: growth was always followed by a fall, and then another rapid growth.
At the moment, we are seeing another growth cycle with which bitcoin has delighted investors in cryptocurrencies. The BTC price began its growth back in October and after a short consolidation around the level of its all-time high of $ 20,000, it showed an increase, ending the year at $ 29,000. Since the beginning of the year, the BTC price has continued to rise and is currently trading in a range where the upper limit is new high $ 42,000 and low $ 30,000.
What will happen in the near future with the course? When to wait for the bottom?
HELL .: If you look at history and analyze previous growth cycles, then we can assume that there is a certain pattern on the basis of which it will be possible to estimate the growth potential of BTC. Looking far into the past, when BTC was worth about $ 13 and the phase of active growth began, we will see an approximate growth from the previous historical maximum to a new one around 9000%.
Further, after the next update of the historical high of $ 1,100, the price of BTC reached $ 20,000, which is approximately 1500%, which is 6 times less than the last time. At the moment, given that the cryptocurrency and BTC market is moving into a more mature stage, which is confirmed by the trading volumes and the number of participants, we can assume the nearest potential growth after updating the historical maximum of 250%, which in price terms will amount to $ 65,000 per BTC.
What are the main factors influencing the huge new surge in people’s interest in cryptocurrencies? How will this affect fiat currencies?
HELL .: One of the main factors that had a significant impact on the rise in the price of BTC and the cryptocurrency market was the COVID-19 epidemic. After the panic sell-off of cryptocurrencies in March, the more forward-thinking investors quickly realized that the pandemic would negatively affect the real sectors of the world’s economies that operate offline. And they began to form portfolios of cryptocurrencies.
To support their economies, governments began to expand incentive programs and produce additional emissions of fiat currency, in particular the United States, which also allowed Bitcoin to gain value..
What many institutional and large investors decided to play on, including Grayscale Investments (about 600,000 BTC), MicroStrategy (70,470 BTC), Ruffer Investments (45,000 BTC) and Square (4709 BTC), and bought out a significant part of the BTC offer from the market.
In addition, the unstable political situation in the United States, where the change of the country’s leader is taking place in a rather nervous mode, helps bitcoin grow. This, in turn, increases the risks of investing in the American stock market. But in this case, many investors retain their appetite for risk and profitability, especially when they see another BTC bull run..
True, many of them have not yet decided to invest, since for many hedge funds, BTC volatility is unnecessarily risky. For example, the correction of BTC by 27% after the test of the $ 42,000 level. But the longer the cryptocurrency market exists, the more participants come to it, and thus the trading volumes increase, making it more efficient.
As for fiat currencies, cryptocurrencies are developing in parallel and so far cannot have a serious negative impact on them. On the contrary, we see that after the rapid growth in the popularity of cryptocurrencies, governments of countries began to impose restrictions on the use of digital currencies. For example, the US and the UK are already developing rules for regulating the circulation of stablecoins..
Russia bans the use of cryptocurrencies as a means of payment. Here I am inclined to believe that the crypto market will develop as long as it does not have a serious impact on the global economy. As soon as governments feel the danger from bitcoin and other coins to the national currency and the country’s economy, then all measures will be taken to limit the circulation of digital currencies..
Is it worth investing in bitcoin today??
HELL .: It is important to understand that investing in cryptocurrencies is risky as the price is subject to high volatility. To protect yourself from unnecessary losses, it is important to approach investing deliberately and build a portfolio of cryptocurrencies, gradually gaining positions in various instruments.
It is worth noting that after this rally, bitcoin is in the top 10 of the global rating of assets by capitalization, next to the shares of companies such as Apple, Amazon, Tesla, Microsoft, etc. But bitcoin is not a stock and the potential for its distribution and use is much higher, since BTC is also a payment instrument that is gaining more and more popularity.
An important point is the fact that the central banks of many countries are already actively introducing blockchain technologies and are engaged in tests for the release of their digital currencies, which can significantly expand the scope of cryptocurrencies and their popularity..
You can buy bitcoin both on our platform and on P2P platforms. However, it is worth remembering about the security of the transaction. In addition, I recommend constantly improving your knowledge about this asset, as new technologies come to the cryptocurrency market almost daily. For example, on our website we have collected a whole selection of educational articles. You can also find educational materials on other open sources. The main thing is to have a desire to learn and accept new knowledge..
– Thanks for the conversation.
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