From $318K to $0: Bitcoin price predictions for 2021
For the period from January 2019, the amplitude of fluctuations bitcoin prices have decreased. Contrary to many predictions about the fall in March, the rate coins stabilized, confidently passing over $ 4 thousand, and closed the first quarter with an increase of 10.9%, which is the best indicator since the end of 2017. However, what caused the current growth and how long it will last, has the long-awaited bull run started on the market??
These questions were answered especially for Bitcryptonews by Valery Petrov, Vice President for Market Development and Regulation of the Russian Association of Cryptoindustry and Blockchain (RAKIB).
According to him, the stabilization of the bitcoin price is due to three main reasons. Firstly, this is speculative demand, which increased after the MTC rate fell to the level of the mining companies’ breakeven point. Enough time has passed for those who lost on the collapse in prices and those who did not enter the market due to sharp adjustments, forgot the negative consequences of the recession and again turned their attention to digital gold as a speculative currency.
«As a result, those who own significant amounts of Bitcoin and can manipulate the market will gradually prepare for a new stage of growth in order to make money on it. Naturally, the stage of growth should be preceded by a stage of stabilization, which we are now observing.», – says Valery Petrov.
The second reason is that the negative consequences that we saw after the Bitcoin price collapse, caused by a lot of fraud in the ICO market and stealing on cryptocurrency exchanges, now weakened, and there is no longer such a negative informational wave. All this forces investors to look for new options for earning money using MTC, and new money comes to this market..
The third reason, according to the expert, is a significant improvement in the quality of the crypto exchanges themselves. Most of the transactions, according to some estimates up to 90%, are artificial speculative in nature. it well understood by all market participants and this pushed them away from working on crypto exchanges. Now, after the emergence of legislation and self-regulatory organizations in a number of countries the situation began to improve and the percentage of fake transactions began to decline, which means that confidence in the sites begins to recover. It also leads to increased investor interest in bitcoin..
At the time of this writing, the bitcoin (BTC) rate is $ 4,128 with a daily gain of 0.68%, continuing a smooth and confident ascent.
text: Ivan Malichekno, photo: Shutterstock