On August 21, the price of bitcoin was approaching $50 thousand, but failed to break through this marker. Experts predicted whether the cost of the first cryptocurrency can overcome this level and what to expect from altcoins
On August 21, the price of bitcoin was approaching the $50 thousand mark. At that moment, the value of the main cryptocurrency reached $49.7 thousand. As of 10:55 MSK on August 22, the digital coin is trading at $49.2 thousand, and its capitalization is $923 billion, according to CoinGecko. Exchanger24 experts predicted whether bitcoin will be able to overcome the $50k mark in the coming days.
Growth Triggers
Now there is a situation in which the movement of bitcoin may be continued or it will go down again, said the head of the analytical department of A-Markets Artem Deyev. According to him, on the one hand, overcoming the volume of market capitalization at $2 trillion was a trigger for growth, as well as the statement of the largest U.S. cryptocurrency exchange Coinbase about investing in the cryptocurrency.
On August 12, the crypto market capitalization exceeded $2 trillion for the first time since mid-May this year. During the last month, this figure grew by almost $800 billion.
On August 20 it became known that the exchange Coinbase will buy cryptocurrency for $500 million and will also invest 10% of profits in digital assets. The distribution of the company’s investments in cryptocurrencies will be determined by its aggregate custodial cryptocurrency balances. Thus, Coinbase’s investment strategy will depend on its customers.
On the other hand, there is still the danger of government regulation of the crypto market, the analyst said. At the moment, there is a situation in which everyone is aware that digital assets are the future of the financial system, but everyone fears their decentralization and tries to be the first to lead the crypto market, said Deyev.
“The positions of bitcoin and other currencies are shaky now, although in the long term no one denies that their role will grow (as well as their value)”, the expert added.
The outlook is positive
In the near future, the price of bitcoin will attempt to break through the level of $50,000 with the achievement of $52,000, predicted Victor Pershikov, lead analyst at 8848 Invest. According to him, at the moment it is hard to say whether bitcoin will be able to consolidate next week above $50,000 because the number of margin longs in bitcoin is still not enough for a sharp shot, but despite the possible local corrections in the area of $43-40 thousand, bitcoin prospects are positive.
The positive mood of investors is indicated by the dynamics of altcoins, the analyst believes. Most of the alternative coins are set to updаte the maximum of this year, as it happened with Cardano, Pershikov explained.
The last time Cardano updated its all-time high was August 20. At that time, the cryptocurrency reached a price of $2.5. In the last month, the digital coin’s value has risen 115% and its capitalization has doubled.
“It is unlikely that all alts will be able to quickly updаte their historical highs, but many of the top 30 crypto assets may set new historical highs this year”, the expert stressed.
The head of analytical department of A-Markets also agreed with the fact that investors now pay much more attention to altcoins. According to him, many see alternative coins as growth drivers.
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