Even the most stubborn crypto optimists, looking at the behavior of the main digital currency, have been asking themselves since the beginning of the year: what was it and where will it lead? Since January 1, 2021 bitcoin rate has more than doubled. The turning point occurred a little earlier – on December 16 BTC price crossed a very important psychological level of 20,000 USD and set the first record in a long time. What happened next cannot be called anything other than an epoch-making event. We talked to Edgar Jansons, the representative of Trust in BTC fund (https://www.trust-in-btc.com), about how all this could end and whether there are still chances for those who “left the crypt” back in December, rubbing their hands happily.
– The main question that worries both professionals and amateurs: what is happening in the digital market and what caused such a mega-rally of bitcoin?
Frankly speaking, it is worth noting that the growth of BTC began back in March 2020, and one of the reasons for this was the well-known epidemic. You can talk about its far-fetchedness for a long time, but it pushed the digital market greatly. The world moved rapidly towards a global economic crisis, the specter of a severe recession clearly loomed in front of some sectors, and the governments of most countries rushed to save the situation using traditional methods with very predictable consequences: the economy was stimulated through the emission of money and social financing. Of course, this negatively affected national currencies and traditional assets. The US elections added fuel to the fire. Against the backdrop of all this, the crypto market has become interesting for large players – institutional investors, since it turned out to be the least affected as a result of the difficult 2020. Well, and then everything is according to the classics: growing demand gives rise to a rise in prices. Add decentralization and a finite number of BTC coins here and we get a whole bunch of stimulating factors, the activation of which was only a matter of time.
– So you at Trust in BTC foresaw a similar course of events?
It is not for nothing that our fund is called Trust in Bitcoin … But, seriously, even for us, such an impressive dynamics turned out to be somewhat unexpected. Our experts objectively assessed the situation, their forecasts are reflected in the analytical reports that we provide to our clients – the growth of the rate of bitcoin and other digital assets seemed to us the most likely scenario for the development of events, and it was assumed that new price maximums would be reached. However, I will not exaggerate – the release of the BTC price in the first two months of 2021 to the 50,000 USD mark seemed too optimistic.
– So what is next? Does it make sense to invest in such a market situation or not to jump on the departing train?
It always makes sense to invest, the main thing is to do it wisely. Of course, before a large-scale purchase, it is better to wait for a correction, in addition, you should not immediately lose your head and invest all your savings in digital assets (and even more so in one of them). Everyone knows about the FOMO effect and, nevertheless, most investors and traders periodically fall under its influence. The digital market is not going anywhere in the near future, so spend time studying and analyzing the situation, consult with competent specialists and only then start investing. Don’t forget about altcoins. BTC is on everyone’s lips, but some worthy projects have shown, are showing and will show no less impressive dynamics.
– A number of well-known economists are of the opinion that bitcoin, and with it all cryptocurrencies, is a “bubble” that will burst at some point. How likely is this development of the situation?
As for the “bubble”: at the moment, this “bubble” has an increasingly significant impact on the traditional economy and is increasing capitalization, attracting quite real investors. By and large, in the modern economy, the stock market has long been the same “bubble”, but it is still quite working. In our opinion, if the crypto market bursts, then only together with the existing economic system, and in this case it will be absolutely all the same what asset your funds are in – they will all be equally useless. True, such a gloomy scenario is not yet relevant now. Of course, sharp jumps in the rate are possible, which will look catastrophic against the background of the rally at the beginning of the year. Think for yourself: a decline in prices, say to 40,000 USD, will be perceived by many as a collapse, and this is exactly twice as much as the absolute maximum reached at the end of 2020.
– Do Trust in BTC experts advise not to worry in this case?
Trust in BTC experts advise to adequately assess the state of affairs and always remember that panic sell (like panic buy) in most cases is the most losing tactic.