Bitcoin is about to take off

By 07/10/2021News

Gold  1759,64

EURUSD   1,1556

DJIA  34431,50

OIL.WTI  76,845

DAX  15048,50

While the stock market is hanging sideways, it is worth looking at what is happening with bitcoin. The first cryptocurrency is approaching the next levels, which investors will be watching closely. The positivity in the crypto market is evident.



There is likely to be a new period of growth for all cryptocurrencies. And here’s why. Just recently, Bank of America published a fairly large report on the prospects and trends of cryptocurrencies. According to the bank, cryptocurrencies are bringing new tools into the financial world, and blockchain technology will help develop new systems and business opportunities in the near future. One such example is the emergence of non-fungible tokens (NFT) and decentralised finance (DeFi).
The share of digital assets in investments by various companies is growing exponentially. The bank also noted that bitcoin has recently correlated better with inflation than gold. It is likely that very soon bitcoin will be used as digital gold, which is easier to buy and sell. Quicker to transfer, and also very easy to transfer or hide. The conclusion of the Bank of America report is that the world is at the very beginning of a long phase of blockchain technology adoption.
Jerome Powell’s announcement that no serious bans on cryptocurrencies are going to be imposed is an additional contribution to the current rise in bitcoin. Only the regulation of certain stablecoins needs attention.
So far, only the strong volatility of the instrument is making adjustments to its use. But as bitcoin’s capitalisation increases, its volatility decreases. Quite in the future, capitalisation will increase and there will no longer be sharp fluctuations. But as the saying goes, if capitalisation goes up, the price will go up, as there are a limited number of bitcoins in total.
Given rising energy prices, rising real estate values in the US, and inflation gaining momentum, bitcoin’s value will continue to rise. This active phase could continue until Christmas and the New Year holidays.

08.00 German industrial production for August
14.30 US initial jobless claims

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.