Cryptocurrency market capitalization has exceeded $1.99 trillion after bitcoin surged at the end of the trading session on Monday, pulling altcoins with it.
Overnight, the price of the main cryptocurrency rose by 14.4%, fueling optimism among investors. The index of fear and greed moved into the neutral zone. It is one of the indicators of sentiment regarding the main cryptocurrency.
The Fear and Greed Index is considered a reliable indicator of investor demand. The neutral outlook implies that investors are no longer afraid and capital inflows into bitcoin may increase.
What happens to the movement of coinsInterestingly, in 2022, only 15.5% of the working capital in the main cryptocurrency was moved. A large percentage remains the same. Historically, a lack of circulating supply causes prices for the main cryptocurrency to rise.
Crypto whale investors with large amounts of money in their wallets remained indifferent to the recent downturn in the market. And the current recovery has made retail investors optimistic, fueling the bullish sentiment.
What is the forecast for BitcoinFinder's recent poll shows that 33 crypto experts have predicted that the price of Bitcoin will reach $76,360 by December 31, 2022. The previous all-time high of BTCUSD remains 10% below the forecast.
Institutional investors also expect a new all-time high for the main cryptocurrency by the end of 2022.
Ganesh Kompella, co-founder of Tykhe Block Ventures, a leading investment company based in Singapore, believes that Bitcoin is in a multi-year process of making new highs and lower lows. He also predicted that 2021 would be relatively calmer against the background of sideways accumulation of coins.
There is a lot of talk now about whether bitcoin is a "safe asset." This is programmable money, and the substitution effect that we may see in the next few years is not only in exchange of gold for BTC, but also for long-term bonds for BTC.
At the expense of whom is Bitcoin growing nowNow the growth of BTCUSD is driven not only by investors with large amounts, but also by wallet holders of all sizes. This distinguishes the current recovery from the situation in January 2022.
The increase in economic sanctions has hit the Russian economy hard as private firms block transactions for Russian clients. Money transfer firms have suspended their services in Russia, and the geopolitical crisis has spurred the rise in BTCUSD prices. Short-term optimism among traders could keep Bitcoin's price above $44,000.
Technical analysis and forecast for BTCUSDIt is worth noting that yesterday's forecast about fixing BTCUSD above $40,000 per coin worked out very quickly. In any case, overcoming this border and fixing above gives a chance for further growth. Now the next border is the level of 47,791.37. The break of which will open the way for Bitcoin to $52,000 per coin.