In November, the cost of the first cryptocurrency fell by more than $ 3 thousand. Experts told what factors speak about the possibility of asset growth in the coming month, and what can hinder it
Bitcoin price has dropped over 8% in the last month, to around $ 56.7 thousand at the time of writing. Only a few days ago, the Bitcoin rate fell to a local low of $ 53 thousand, before skyrocketing.
Despite the unfavorable dynamics in November, bitcoin has increased in price by about 100% in the first 11 months of 2021. However, in the coming month, the situation could drastically shift.
By the end of this year, Bitcoin may well update its historical maximum (now it is $ 69 thousand), says Sergey Zhdanov, CEO of the EXMO crypto exchange.
However, he warned that due to recent events, the growth of the first cryptocurrency may be in doubt. From the key news that may affect (and have already influenced) the rate of the cryptocurrency, the expert identified a new strain of the Omicron coronavirus.
Vaccine makers Pfizer and Moderna say the new vaccine will take at least three months to prepare. At the same time, the head of the US Federal Reserve, Jerome Powell, spoke about the new risks for the American and global economies.
“Cryptocurrencies have performed better than some other assets such as the oil complex and small-cap stocks.
From a fundamental point of view, bitcoin has potential, as evidenced by the data from Glassnode – the correction did not push long-term investors to massive sales – over the last month they got rid of only 0.7% (100 thousand BTC) of their 13.5 million BTC.
This, in turn, indicates the continued growth and activity of a large buyer, ”explained Zhdanov.
Now the situation on the crypto market will depend on whether the “whales” can create a New Year rally, added Anton Kravchenko, CEO of Xena Financial Systems.
According to Anton, this requires news about the support of Bitcoin or Ethereum by a large bank or company. However, the expert warned that it is not yet clear who could make such a statement.
“If there is no rally before the New Year, then the potential market growth is postponed to the second half of February and March after the Chinese New Year,” the expert predicted.