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Bitcoin dreams of reaching $ 50K again. What are the predictions for him this spring?

DATE OF PUBLICATION: 2021-03-05 16: 17:59 Yesterday, the value of the most popular cryptocurrency, bitcoin, fell below the level of $ 49,000, but later buyers helped the cryptoasset by returning quotes above the $ 50,500 mark. Fans of the digital asset yesterday tried to keep its value higher this psychologically important level. Today, March 5, bitcoin, in comparison with recent records, has dropped significantly again and is trading at the time of this review at around $ 46,817. Comments of the head of the US Federal Reserve System Jerome Powell, who said yesterday that he was alarmed tightening of financial conditions, since the growth in the yield of US government bonds affects the cost of borrowing. In addition, Powell confirmed that the regulator intends to continue to adhere to a soft monetary policy – until the moment when the situation on the labor market does not noticeably improve. By the way, the United States is still very far from its goal, namely maximum employment and average annual inflation of 2%. Powell’s statements warn of increased fluctuations in monetary stimulus. In 2020, bitcoin quotes have quadrupled, and this year – by 66%, and this was mainly due to the fact that this digital currency has almost moved into the status of assets that protect investors from inflation. , only 4 million bitcoins are currently in free circulation on the market. The third halving (halving the size of the reward to miners) in the bitcoin network, held in May 2020, reduced the reward for miners for adding a new block from 12.5 BTC to 6.25 BTC. This kind of phenomenon further exacerbates the shortage of coins in the market, while businesses are actively investing in the reference cryptocurrency. Major payment apps such as PayPal and Square have generally provided their users with the ability to buy and sell digital assets. Crypto market players keep a close eye on Bitcoin addresses that have been stationary for quite some time. Experts have noticed the following pattern: during the period when old virtual coins start moving, there is a correction in the market. To date, 1,000 bitcoins have been moved and have been inactive since 2010. Consequently, in the light of what is happening in the traditional market, there is a high probability of a new drawdown for both Bitcoin and the entire crypto market as a whole. The upheavals in the stock market also significantly affect Bitcoin and the entire cryptocurrency sphere. Despite the efforts of the Federal Reserve System to mitigate the current situation, the yield on the US 10-year government bonds again moved to confident growth, and the market reacted to this with a noticeable decline. Recall that about a year ago, due to the pandemic, a significant drawdown in stock indices determined a record drop in bitcoin quotes. The main stimulus for the growth of bitcoin may be the beneficial effect of economic stimulus packages that are expected to be implemented in developed countries, for example, payments of benefits to US citizens amid the coronary crisis. In light of such events, Bitcoin is close to the status of an inflation protection instrument. Perhaps the correction of cryptocurrency quotes has already ended, and in the short term we can witness their movement to new record highs. And this would be great news, but the likelihood of a correctional decline in value is also too high, because large players still have unfulfilled goals of increasing their positions within the range of $ 38-43 thousand. Material provided by InstaForex –

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