Cryptocurrencies were to become more expensive and cheaper

Bitcoin, the world’s oldest and largest cryptocurrency, set a dozen or so days ago an all-time record, exceeding the limit of $ 69,000. However, it has recently dropped to a monthly low of $ 55,500. According to technical analysts, with the sustained pressure of sellers, the path to a price of 53,000 or even 50,000 dollars may open up. On the other hand, only a permanent return above the round level of USD 60,000 will be a signal of the end of the correction.

Ethereum, the second largest cryptocurrency by market capitalization, fell from around $ 4,850 to just under 4,000 at the same time. Other important “coins” including binance coin (BNB), solana (SOL), cardano (ADA), XRP and polkadot (DOT) have also been very cheaper over the past week.

Simon Peters of eToro said that some of the most important cryptocurrencies plummeted after reaching historic heights is nothing unusual as “the ups and downs of the market are part of the story.”

One of the possible reasons for the mass sale of cryptocurrencies was the news that US President Joe Biden signed an infrastructure bill worth $ 1.2 trillion. It imposes additional tax reporting requirements on cryptocurrency traders. Firms will be subject to stricter crypto asset reporting and handling laws, and this has worried a large chunk of investors.

EToro’s Simon Peters also points to a purely technological reason. It is the Taproot update for the bitcoin blockchain, which caused uncertainty for many market participants. These kinds of updates cause traders to hold back trades to see what happens to the network. The Taproot update is arguably the most important such change in the last four years. It aims to make transactions faster and cheaper.

Zhu Su, CEO of Singapore’s hedge fund Three Arrows Capital, points out that in recent weeks a leading digital currency contract network has been plagued by soaring transaction fees. As a result, he himself announced that he had abandoned ethereum, despite supporting it in the past. Interestingly, Zhu Su withdrew from this statement after several hours, explaining that he had made it in a “hot moment”.

In early November, the public learned about many enthusiastic forecasts, which foreshadowed the dizzying breakthrough of historical records by bitcoin and ethereum this year. Today these forecasts seem unlikely.

An analyst hiding behind the code name PlanB – known for his S2F bitcoin pricing model – recently predicted that the price of the world’s oldest cryptocurrency will rise to $ 98,000 this month, and will be around 135,000 by the end of the year.

Economist and analyst Alex Krüger believed that bitcoin could reach $ 100,000 by the end of the year. He stressed, however, that in his basic scenario, the most likely range is $ 75,000-85,000.

Justin Bennett, an investor and cryptocurrency analyst for “Ether” predicted a move towards $ 5-6,000. He added that the price could go up to 20,000 by January.

The group of experts convinced of the bright future of bitcoin is still large. ARK Invest CEO Cathie Wood says that big institutional players with huge capital are in a rush to move to bitcoin. Institutions appreciate the most popular cryptocurrency, among other things, due to the very low correlation of bitcoin with other assets such as stocks, bonds, currencies and commodities.

Cathie Wood maintains her current bitcoin price estimate of $ 500,000. – If institutional investors spend 5% on bitcoin According to our estimates, the rate will increase to half a million dollars – predicts the CEO of ARK Invest.

Anthony Scaramucci, founder of Skybridge Capital, also expects the price of the world’s oldest cryptocurrency at $ 500,000. – Bitcoin is at a very early stage of development. The moment will come that it will eclipse gold. I won’t be surprised if Bitcoin goes up exponentially and gold goes up linearly, Scaramucci said last week.

Jacek Brzeski

About Alex Marcell

He likes dogs, pizza and popcorn. Already a fanboy of Nintendo and Sony, but today throws anything. He has collaborated on sites and magazines such as GameBlast, Nintendo World, Hero and Portal Pop, but today is dedicated exclusively to Spark Chronicles.

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