Bitcoin is striving to the highs, and those who invested in cryptocurrency three years ago are especially happy about this, in 2017 it seemed that the surge in digital gold could no longer be stopped. The market crash was a real cold shower even for crypto enthusiasts, but bitcoin survived and pulled the entire digital market with it. Will today’s situation be a mirror image of 2017? Where will bitcoin move, almost reaching all-time highs? Is it worth buying cryptocurrency or is it too late? The report of the analytical group of the Trust in Bitcoin fund (https://www.trust-in-btc.com), which was distributed among the clients, is devoted to the analysis of these issues. Judging by the reviews, many of them are considering the possibility of increasing their investment portfolio precisely at the expense of cryptocurrencies.
Trust in BTC experts emphasize that the similarity of the situation with the state of affairs three years ago is only visible. The fundamental reasons behind today’s digital market movements are vastly different. In 2017 Bitcoin caused only a skeptical grin from most large investors who prefer traditional assets. In addition to volatility, the global prospects of cryptocurrencies were criticized, even the impressive growth dynamics of the price of bitcoin could not reverse the negative, since the main market participants were not ready to issue a credit of trust to an unpredictable asset.At the moment the situation is radically different.
First of all, it is worth remembering the quite predictable halving that occurred this year and reduced the issue of coins by 50%, which created the global prerequisites for the coming deficit. To the disappointment of many investors the effect did not take place immediately, but the results met the wildest expectations. According to statistics, about 3.4 million BTC remains to be mined, despite the fact that the mining speed will constantly decrease. The regularity of halving makes it possible to predict the growth of demand for bitcoin in the future with a certain degree of confidence.In addition, there have been global changes in the surrounding world.
The COVID-19 pandemic and the global economic crisis have become a major challenge for the most fiat currencies, with very few able to weather this storm without tangible losses. Against this background the attitude of large investors towards bitcoin and cryptocurrencies in general began to change rapidly. The impossibility of uncontrolled emission has become the main advantage of BTC as a defensive asset and as a project for long-term investment.With all this, it is worth noting that there was no sharp surge in media interest in digital currencies during the year, so the factor of the so-called hype can be ignored (in contrast to the similar situation in 2017).
The forecasts for the development of the situation in the near future, which the clients of Trust in BTC have gained access to, can be characterized as moderately optimistic. Fund specialists suggest that due to the difference in fundamental factors, the bitcoin rate will not repeat the previous collapse, but will be able to gain a foothold at the achieved level and, quite likely, will demonstrate a small but stable growth in the near future. The increase in the number of institutional investors will lead to greater interpenetration with traditional markets, which, in turn, will contribute to wider acceptance of bitcoin (and cryptocurrencies in general) and, accordingly, will have a positive effect on the exchange rate. One of the key events that will affect this process will be cooperation with the PayPal payment system.With regard to the purchase of „digital gold“ at the moment.
Trust in BTC clients are advised, first of all, to determine the main goal. If we are talking about long-term investment, then the purchase is quite justified, since in the long term, Bitcoin has good potential for growth. If there is a desire to make a profit on speculation at the present time, then the moment is not the most suitable one, since in the near future some rate correction is quite likely.