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The first cryptocurrency resembles a phoenix that is reborn from the ashes every time. The sceptics buried it once again, after falling to the $29,000 level. And it has risen again and is punishing the sceptical bears.
BTC
What are the drivers of growth this time around? There are many of them. The main ones are as follows:
– The cryptocurrency market is completely bogged down by regulators from the US and China. This, by the way, was the basis of the previous decline. As we noted, at some point in time, investors and traders “don’t care” about this negativity. Since everyone who wanted bitcoins has already sold on this negative
– Growth of the network hash rate. It continues to increase after several months of decline. This means that miners have less and less desire to sell mined coins. Thus the market supply is decreasing. And in the slightly longer term, it also means a rapid rise in the cost of mining
– The ongoing quantitative easing programme in the US. Every month 120 billion unsecured dollars are poured into the market. However, not only the U.S., but also the EU, Japan, Britain and dozens of other central banks around the world are doing this.
– Against this background, bitcoin’s capitalisation of $900 billion looks kind of silly. There are only 3-4 billion coins on the market in free supply, which can theoretically be bought. The value of 1 million BTC is $49 billion. That is times less than what central banks print every month. But if someone wants to buy that 1 million BTC, the price will really fly into space
We still stick to our forecast of 1 BTC at around 58-87 thousand dollars by the end of 2021.
09.30 German Manufacturing Activity Index for August
10.00 EU Manufacturing Activity Index for August
10.30 UK Services Business Activity Index for August
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