Over the past month, bitcoin has risen in price by 60%. On August 14, for the first time since mid-May, the digital coin reached $ 48 thousand.Today, on August 17, the main cryptocurrency is trading at $ 46 thousand, and its capitalization is $ 865 billion, according to CoinGecko, RBC Crypto reports.
Experts have named factors that will drive Bitcoin’s growth in the coming months. How is the cryptocurrency market growing?
In addition to bitcoin, altcoins have also grown. Over the past month, Ethereum has risen in price by 88%. Over the same period, the Cardano rate has grown by 110%. The token took the third position in the list of the largest cryptocurrencies by capitalization, according to CoinGecko.
The value of Binance Coin increased 60% over the month, while XRP rose 154%. As a result of the growth of cryptocurrencies, the total capitalization of the crypto market on August 12 for the first time since mid-May exceeded $ 2 trillion. Over the past four weeks, the capitalization of the digital asset market has increased by more than $ 800 billion.
Buying now is a good idea
At current levels, it makes sense to invest in bitcoin for a long time (from a year), said leading analyst at 8848 Invest Viktor Pershikov. In his opinion, in the near future the quotes will not return to the level of $ 30 thousand, but investors need to be prepared for drawdowns of 15-20%, since there is a possibility of a correction to the level of $ 40 thousand.
“Globally, if by the end of the year we see an update of the historic high, then next year bitcoin will be able to reach the level of $ 100 thousand, so buying bitcoin is always a good idea ,” the analyst explained.
Now the market is in an upward trend, says Sergey Zhdanov, CEO of the EXMO crypto exchange. According to his forecast, by the end of summer, with a high degree of probability, the value of the main cryptocurrency will exceed $ 50 thousand.
“If the current momentum continues, then by the end of the year we may see not only $ 60,000, but also higher levels ,” the expert noted.
Nikita Soshnikov agreed with Zhdanov’s forecast, according to him, by the end of August the price of bitcoin will exceed $ 50 thousand, if there are no negative messages for the crypto market by the end of the month.
Why are BTC quotes growing?
Despite the negative news from the United States, where they plan to introduce additional taxes for representatives of the cryptoindustry, the bulls won and the quotes went up, Zhdanov noted. In his opinion, one of the most important news in recent years was the publication of Tesla’s financial report for the second quarter of this year. The document reflected that the company did not sell bitcoin, despite the fall in its value.
The bitcoin rate depends not only on rational factors, but also on the emotions of investors, that is, on their emotional perception of market prospects, Soshnikov explained.
“Now this perception is rather positive and demonstrates that investors expect further growth. But more than once we have observed how a combination of some factors can reverse this perception, ”Soshnikov warned.
Institutional investors began to actively buy bitcoin
Based on recently published documents on the website of the US Securities and Exchange Commission, it appears that bitcoin has entered a new phase of adoption by institutional investors. Over the recent period, four large companies have reportedly acquired a large number of shares in the Bitcoin Investment Trust.
According to information published on the Twitter account of MacroScope (a channel dedicated to the activities of institutional companies), the purchase of GBTC by the above firms occurred long before the Bitcoin rally, in the period until June 30, 2021.
So, for example, the company Ancora Advisors with an office in Ohio acquired about 13 GBTC. This step, according to experts, demonstrates a significant increase in institutional interest in the digital asset industry, which is a priori a favorable factor for the entire industry.