FX.co ★ Bitcoin gets out of the hole: top 3 events guaranteeing cryptocurrency growth

After a powerful decline of 25%, the cryptocurrency market is gradually beginning to recover its position (however, it is still far from reaching record levels). After declining $12,000, Bitcoin managed to gain a foothold at $50,000 and continues to grow. A certain role in the tough correction of the market was played by the information agenda, which played against bitcoin thanks to the public statements of Musk and US politicians.

However, on February 24, the situation returned to normal, and the negative color of the information space around the crypto-asset market disappeared. This happened for several completely unrelated reasons. First, the CEO of a large investment fund ARK Investment Management focused on cryptocurrency and bitcoin, said that she will continue to support digital coins, and the correction is a natural result of systematic growth.

The second reason, thanks to which the situation around the cryptocurrency stabilized, was the price correction. The collapse of bitcoin quotes made this asset more understandable for investors. It became clear that it "obeys" the laws of the market, its growth was justified, and not dictated by the confluence of certain investment and economic circumstances. This collapse also became a kind of refutation of the statements of Elon Musk and the US Treasury Secretary. The situation with bitcoin proved that the asset had the prerequisites for growth before investment injections, which only locally increased the volatility of the coin.

And the third factor that contributes to the further growth of bitcoin quotes and the entire cryptocurrency market is the next investment from Square, which belongs to the creator of Twitter Jack Dorsey. According to the latest financial report, it became clear that the company acquired another 3,318 bitcoins. Thus, Square converted 5% of its reserves into digital money. The company acquired digital assets totaling $220 million.

This decision may be due to certain protective properties that bitcoin has. Many experts argue that the first crypto-asset is an excellent alternative to gold and helps to protect the assets of holders from inflationary losses. The only difference between a coin is volatility, and - paradoxically - it can be both a plus and a minus. The fact is that thanks to the active development of bitcoin, holders not only saved themselves from inflationary losses but also gained a profit of 30% of their investments.