As long as the world continues to oppose the coronavirus, cryptocurrencies are growing at record rates. UA-Times puts forward an overview of the cryptocurrency market and a forecast of short-term prospect from Hamilton senior analyst Alex Shuster.
The capitalization of the cryptocurrency market has increased by 40.5% since the beginning of the year, Bitcoin’s value has increased to 43%, but as of January 19, it is traded around $37,100 per coin, a 28% increase over the bid start of 2021. That is, a major part of the cryptocurrency market is still in Bitcoin. The population is interested in risky investments due to the unstable economy, weak banking sector, low income on bank deposits, stable strong hryvnia with no prospect of abrupt devaluation. However, it is impossible to calculate exactly the number of cryptocurrency owners since there is no register.
It is worth noting that, on average, the attitude towards the cryptocurrency is already normal, since everyone is aware about its existence. However, due to the fact that the population has no money, it is not necessary to talk about the trends of rapid demand for this asset. Only middle- and high-income people can diversify savings into cryptocurrencies.
In terms of recent trends, Bitcoin stopped growth as early as January 8 and is in a state of correction. Competent technical analysts can clearly see the price correction levels and the prospects of retrieval of rapid growth, with a goal of $56,000 per coin. One might say that such an abrupt increase as in early January can be observed if the price rises up to $38,700. The end of this week and the beginning of the next will be the tipping point when it will be possible to observe either a retrieval of growth, or a deeper correction to $28,300 per coin. The events in the United States on the occasion of the inauguration of the newly elected president will be the driving force of news for the Bitcoin’s dynamics.
Despite the attractiveness of a potential 30-35% increase in the price of Bitcoin, any investor needs to understand the high level of risk of these assets, the lack of guaranteed returns, and must be willing to lose all of the investments, or freeze them (following the example of those who bought Bitcoin for $20,000 per coin in 2017). That is, if you have extra money, you can buy at current prices and expect growth above $50,000 per coin.
Cryptocurrencies can be purchased by means of a bank card on the stock exchange, or by cash through special exchange offices. There are also sites (https://localbitcoins.com/) with private advertisements for sale or purchase of cryptocurrency, where a cryptocurrency exchange platform is created for each country. However, security issues of any monetary transactions need to be processed separately, and it is important to understand that there are always risks of ordinary robbery in face-to-face meetings with those who sell cryptocurrency.
The cryptocurrency market may turn out to be a bubble if an alternative appears. Now this is an asset that not only has speculative demand, but also real, according to Alex Shuster.
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Translation: Evelina Susyk
