The crypto market was in a state of mild euphoria when bitcoin broke $50K for the first time since May 15. It is difficult to say how stable this level may turn out to be, since the bulls’ strength has clearly declined now. Nevertheless, the very fact of the ability of the reference cryptocurrency to overcome such an important technical and psychological level is a good help for a positive assessment of the prospects of the crypto market.
The crypto market was in a state of mild euphoria when Bitcoin broke $50K for the first time since May 15, the crypto market was in a state of mild euphoria when Bitcoin broke $50K for the first time since May 15
Bitcoin received support due to a number of factors. One of the main factors in support of BTC may be an active phase of asset accumulation, as well as an equally active phase of coin withdrawal from the balances of crypto exchanges. This is a clear sign of the desire of investors to move into the phase of holding the asset in anticipation of growth. In addition, the active growth of the hashrate in the bitcoin network may affect, which participants in the crypto market often associate with an increase in the price of the asset.
Over the past 5 weeks, bitcoin has been closing in the green zone, which also acts as a strong support factor from technical analysis. Against the background of the financial success of one of the leading crypto exchanges Coinbase (NASDAQ:COIN), the company announced its intention to buy $500 million worth of cryptocurrencies on its balance sheet. In addition, PayPal (NASDAQ:PYPL) announced that from today UK residents will have access to the platform’s crypto services.
Against this background, the greed and fear index of bitcoin and the largest cryptocurrencies switched to the “extreme greed” mode yesterday. According to the idea of this indicator, the higher it is, the closer the sale is. Nevertheless, in the conditions of an increasingly inflated bubble of the traditional market, it is quite possible that bullish sentiment may well be maintained even against the background of an extremely overheated market.
The total capitalization of the crypto market continues to grow and is moving towards $ 2.2 trillion.
Bitcoin is the absolute locomotive of the crypto market and, with a few exceptions, sets the tone for all altcoins. According to the analytical company Chainalysis, global adoption of cryptocurrencies has jumped by almost 900% over the past year.
Unexpected data also came about Afghanistan, which Chainalysis ranked 20th out of 154 in the context of the introduction of cryptocurrencies. Last year, the company did not include the country in this rating at all. Thus, in the face of this country, it is quite possible to assume that by the end of 2021, the crypto market in general and bitcoin in particular have the potential for large-scale market coverage of developing countries with new price horizons for the main cryptocurrencies.