On Friday morning, Bitcoin again tries to climb above $8,000. The decline to $7,500 the day before attracted new buyers, as a result, BTC increases by 5% and trading at arm's length from $8,000. Once again, the coin was helped by investors seeking to enter the market on drawdowns. A week ago, buyers stepped up around $7,000, now closer to $7,500. Following the first cryptocurrency, as always, the altcoin market is growing: from 4.5% (XRP) to 10% (Litecoin).
Apparently, market participants are no longer afraid of moving large amounts of bitcoins. On May 22, almost 10,000 BTC ($79 million at the current exchange rate) were withdrawn from the Huobi wallet, today 1,000 BTC were withdrawn from the cold wallet of the Bittrex exchange. It seems that the crypto community has realized that these assets just change hands and return to circulation, and not liquidated.
Crypto optimists believe that Bitcoin is now only at the very beginning of a long uptrend. Bitcoin pioneer and co-founder of Gemini Tyler Winklevoss believes that Bitcoin is a digital version of gold, whose market capitalization is about $7 trillion. against $140 billion for BTC at the moment, which indicates the tremendous prospects for the first cryptocurrency. However, you should always remember about the personal interest of the twins, as they own a large number of digital assets.
In the medium term, Bitcoin, and especially investors in a digital asset, can face serious challenges. The crypto analyst Josh Rager calculated that Bitcoin collapsed about 9 times in the past rally. Therefore, the nerves of the bulls will be seriously tested, and with each new wave of correction, the most impatient will be eliminated. For others, it will be a good chance to buy an asset at local minimums.
We have repeatedly noticed that the cryptocurrency market is moving in close accordance with the technical analysis, which in turn was based on the experience of the stock market of the early 20th century. Later, the stock market changed under the influence of very large banking capital and index funds. But at the moment, cryptocurrencies are most attractive for long-term investors, which form an uptrend and for speculators which periodically rock the boat.
BEST BROKERS TO TRADE CRYPTO
FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.
Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.