The first cryptocurrency took a month to return to the level of $ 50 thousand. Experts said whether this means that now the asset is aimed at further growth and renewal of the maximum
On October 5, the price of bitcoin exceeded $ 50 thousand for the first time since September 7. Over the past week, the first cryptocurrency has risen in price by 19%, and its capitalization has increased to $ 943 billion. A month ago, the cost of the first cryptocurrency per day decreased by 16%, to $ 42.8 thousand. Experts explained what the rapid recovery of quotations may indicate and whether the growth will continue asset soon.
Growth is justified
The recovery of bitcoin to $ 50 thousand is due to positive fundamental factors, said leading analyst at 8848 Invest Viktor Pershikov. According to him, now the rate of the first cryptocurrency is positively affected by the recovery of the hash rate, the increase in purchases by institutional investors, as well as the risks of a decrease in traditional financial assets.
“The growth of the crypto market speaks to the demand for bitcoins and altcoins from investors looking for a safe haven, as the classic markets are obviously overheated,” the analyst said.
This summer, the bitcoin hash rate decreased by more than 50% due to the complete ban on mining, which was introduced by the Chinese authorities. Miners from the PRC began to massively turn off equipment for relocation to other countries. Since the end of July, the hash rate has begun to recover and on October 5 it is 136 Eh / s (exasheh).
According to their CoinShares report, at the end of September, institutional investors invested $ 69 million in bitcoin-based derivatives in a week.The total inflow to cryptocurrency funds was $ 90.2 million.
What to expect next
Large investors took advantage of the decline in bitcoin to $ 40 thousand in September, I am sure the CEO of Xena Financial Systems Anton Kravchenko. According to him, this may lead to the fact that by the end of the year a new bull run will occur on the crypto market and bitcoin will approach the level of $ 100 thousand. Kravchenko.
The latest upward price movements in bitcoin may undoubtedly indicate that bullish sentiment is now very strong, says Dmitry Machikhin, CEO of the investment fund Pressman Capital. According to him, the bulls are determined to continue to grow, both in the fourth quarter of this year and in the first quarter of next year.
The leading analyst at 8848 Invest agreed with the forecast that by the end of the year Bitcoin is able to renew its historical maximum. In his opinion, this will happen despite massive sales of the first cryptocurrency by institutional investors, which will probably start happening closer to $ 65 thousand.
If bitcoin manages to update its historical maximum in the current year, then in the first quarter of next year a correction will begin in the market, Pershikov is sure. He also added that the beginning of the year is the time when new legislative decisions are published or adopted.
“I suppose that at the beginning of next year we will hear new regulatory statements regarding the control of the sphere of cryptocurrency turnover, which will be negative for the industry,” said Pershikov.