After months of uncertainty, the cryptoindustry looks set to take a major leap forward. More recently, the total market capitalization has grown to $ 2 trillion for the first time since May of this year, in addition, in the last three weeks alone, $ 700 billion has been invested in various cryptocurrency projects and Bitcoin .
The market surge was particularly driven by two events – the successful London hardfork on the Ethereum network and the adoption by the US Senate of the infrastructure bill, which contains some clarifications on the taxation of digital asset holders.
We checked the actual data: the cryptocurrency market still looks great. First of all, this is facilitated by Bitcoin, which is valued at $ 47,392 this morning. On the hourly chart of BTC, it is noticeable that the asset is near the upper border of its recent movement.
So far, the peak of the value of the first cryptocurrency was recorded on August 14 – it amounted to $ 48,144.
Bitcoin price hourly chart
The same goes for the rest of the cryptocurrencies. Most coins from the top ten cryptocurrencies by market cap ended the last week with tens of percent increase in value. Solana was the leader here: its rate increased by 41 and 66 percent in a day and a week, respectively.
Bitcoin prepares to grow further
Cointelegraph reporters have an exclusive interview with Kadan Stadelmann, CTO of cryptocurrency platform Komodo. In it, the expert noted several fundamental factors behind the potential continuation of the rise in the BTC price.
Here is a quote from him regarding the aforementioned new bill in the US Congress.
Regardless of the outcome, the bill makes cryptocurrencies a hot topic among US policymakers and helps raise public awareness of blockchain technology. In addition, traditional financial institutions are likely to increase the accumulation of cryptocurrencies if additional rules governing digital assets are passed in Congress.
Recall that the expert is referring to the new US infrastructure plan, in which it was planned to expand the requirements for tax reporting for certain companies. In fact, it was about payment platforms and cryptocurrency exchanges, however, due to vague wording, the changes could also affect miners and even software developers.
Bitcoin price change in the last 30 days
Stadelmann noted that the accumulation of bitcoins by large investors and miners is taking place against the backdrop of a large outflow of coins from exchanges. Together, these factors create a shock to the supply of an asset, that is, a favorable effect on the growth of its value. However, the market is still full of bearish traders and investors. In this regard, Stadelmann believes that the main cryptocurrency will not be able to grow so quickly to a new all-time high.
Growth in the number of large transactions in the Bitcoin network
The main strategy of big capital on the crypto market at the moment is the accumulation of bitcoins on their cold wallets. According to a recent study by the analytics platform Glassnode, the supply of BTC held by long-term holders exceeded 82.68 percent. In such conditions, it is investment, not speculation, that becomes the most attractive tactic. This is why the price of Bitcoin should continue to rise in the next few months, experts say.
Analysts of the Santiment platform note that the total volume of BTC managed by crypto wallets with a value of 100 to 10,000 bitcoins has reached 9.23 million coins .
Some of these coins will still be sold on the market to fix profits, but long-term investors are in no hurry to sell the rest. We can conclude that now too many market players are attracted by the 100 thousand dollar line on the Bitcoin chart. Obviously, since most of the niche participants believe in the ability of BTC to reach this level, sooner or later the cryptocurrency will still get to it .
Here is a quote from the head of the analytical department of CEX.IO Yuri Mazur on this matter.
With the forecast that the price of Bitcoin will rise to over $ 70K by the end of the year, many investors are already looking forward to being part of this historic growth in the market.
Note that the growth of BTC even up to 70 thousand dollars in a few months may become more attractive than the yield of most stocks on the stock market. Also, the recent sharp collapse of gold contributes to an increase in the popularity of cryptocurrency in one way or another. It is easily seen on the graph.
Gold price chart for the last year
We believe that at the moment there is an excellent opportunity to accumulate both Bitcoin and many popular altcoins. If BTC can reach its all-time high, other cryptocurrencies will also follow the market leader and traditionally deliver even better returns. At the same time, as the events of mid-May 2021 showed, in the digital asset market, you need to be prepared for anything. Therefore, we recommend using stop loss-type risk mitigation tools, even despite the overall positive in the niche.
