– It seems only a matter of time when the 70,000 mark will be exceeded. dollars – says Michał Stajniak, an XTB expert, in an interview with MarketNews24. – A similar situation takes place on ethereum, where the level of 4,800 was exceeded and investors are looking at 5,000. dollars. The flow of capital from the main cryptocurrencies to those less known and with smaller capitalization is also important.
Therefore, the share of bitcoin, which constitutes approx. 40%, is decreasing. cryptocurrency market capitalization, which means that this market is becoming more and more diverse.
The increase in the value of the cryptocurrency market is primarily due to the fact that investors are increasingly concerned about the consequences of the subsequent increase in the scale of the coronavirus pandemic.
Investors’ concerns are also related to inflation. Especially since it is very high in the US (and very close to inflation in Poland), so investors are looking for ways to protect their capital.
– A manifestation of these growing concerns is the increase in the price of gold, which, however, does not give such emotions and such high rates of return as the cryptocurrency market – comments the XTB expert.
The cryptocurrency market will continue to grow as some emerging market countries may want to create their own cryptocurrencies, which is already the case for China.
– It is important that rapidly rising energy prices may hit the cryptocurrency market – adds M. Stajniak. – “Mining” of cryptocurrencies such as bitcoin is associated with the absorption of a huge amount of electricity, with its shortage, cryptocurrencies based on staking can benefit from it.
Thanks to staking, you can receive interest in a given cryptocurrency for being kept in the indicated wallet. Stacked cryptocurrencies are based on the PoS (Proof of Stake) protocol. Staking is like a deposit.