Gennady Nikolaev, an expert at the Academy of Finance and Investment Management, shared with BitCryptoNews his vision of the future prospects of the cryptocurrency market and a forecast of the next changes in the bitcoin rate.
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According to the expert, there are no prerequisites for a significant increase in the value of bitcoin. Since 2018, there has been a clear downtrend, a fundamental picture of a further drop in the exchange rate to the level of the end of last year 7000-7500 dollars.
For BTC, the first two weeks of 2020 were the most successful in the last 8 years: quotes jumped 25%, but soon after that the growth rate slowed down, and by the end of January, the main cryptocurrency added about 34%. Analysts: Ethereum (+ 39%), XRP (+ 25%), Bitcoin Cash (+ 85%), Litecoin (+ 73%).
There are no serious reasons for the growth of cryptocurrencies yet. to enter the market due to regulatory restrictions and lack of the necessary infrastructure. There is no significant influx of new users: the number of addresses has been holding on average at 600 thousand for a year, the number of daily tweets mentioning bitcoin is close to mid-2016.
The only reason for buying so far is the upcoming Bitcoin halving, after which the miners’ reward for each mined block will be halved, to 6.25 BTC. Conditional Coin Offer and Market Offer..
In August last year, litecoin halving took place: on the eve of the changes, the coin went up to $ 144 due to active speculation «day x», but immediately after it, the LTC rate quickly dropped to $ 38 and is now trading around $ 67.
Most likely, Bitcoin will face a similar fate in the next three months. The rest of the cryptocurrencies will grow for the company, as is usually the case in the digital market: investors accelerate the leader’s quotes, after which they pay attention to cheaper coins, which, due to their initially low cost, have great potential in comparison with BTC. Of course, the potential of such assets is also much higher than that of Bitcoin, so invest in them as carefully as possible…
In February, one should expect a fall in the MTC to $ 8,500, after which a short-term rise in the rate to $ 10,000 – $ 11. 000.
You can find out about the dates of other key events in the cryptoindustry of 2020 here.
Gennady Nikolaev believes that there are practically no reasons for investing in the main cryptocurrency now, despite the fact that it is the only one in the entire market that is of at least some interest and indeed has some capabilities..
This is due to the fact that since the inception of Bitcoin, Visa, Mastercard and other payment systems have significantly evolved, now offering their customers a very convenient and fast service. For today’s realities, waiting for a BTC transaction is too long, and to increase the processing speed almost impossible. Many are counting on second-level solutions..
Unfortunately, bitcoin, as a means of payment, is now used only to bypass currency controls and as a way to stand out. However, it began to show itself as a store of value, especially in the context of the economic crisis and hyperinflation in some countries. It is not yet known exactly what this will lead to, so you can still invest a small amount in bitcoin, but not forgetting about non-standard risks.
Why Investors Are Piling Into Bitcoin Despite the Risks | WSJ
At the moment, it makes special sense to invest in Ethereum, since many companies use ETH to attract funding for their startups and, after successful crowdfunding, begin to sell internally to pay for developer services, rent and other costs. The rest of the top symbols are less popular copies of bitcoin or ether and have increased volatility.
text: Gennady Nikolaev, photo: Shutterstock, Unsplash, Deex