There is a marked recovery in the cryptographic market. Yesterday, bitcoin surpassed $19,300 for the first time since December 2017, the airwaves passed the $600 mark and XRP is showing weekly growth of more than 100%.
Denis Voskvitsov, head of the Exantech financial company, believes that the 2021 bitcoin may well exceed the historic high of $20,000. However, he notes:
„Bitcoin has growth and decline cycles associated with halving. In the first year, the bitcoin accelerates, then the hippe dies and quotes go down. In general, during the correction period, bitcoins give up to 80% of the increase during the bullish cycle (not the price).
From Voskvitzov’s point of view, Bitcoin can really show ‚astronomical‘ growth, in theory even a rise to $500,000 or $1,000,000 is possible, because this cryptographic currency is designed to be more expensive. But there are several risks that could prevent the value of the cryptovite from rising. One of them is the emergence of a competitor that could cause Bitcoin to lose its leadership like Yahoo! and Netscape once did.
Another risk is government policy. If a hippie is formed around the cryptovoltaic currency, as in 2017, the rate of capitalisation of the bitcoin compass may cause governments to fear systemic risks. Therefore, the next round of growth will depend on the ability to survive regulatory pressure, the expert stressed. Voskvitzov said that the next round of growth will depend on the ability to survive the pressure of the regulators:
„Many countries are developing their own digital tokens of national currencies, which hypothetically should create competition for bitcoin. However, they have a problem with centralisation, so projects such as Bitcoin will be popular“.
Voskvitzov also emphasises that retail buyers are now entering the market, many of whom are already priced too high for bitcoin. At the same time, other cryptocurrencies are still cheap against this background, even after leaps of tens and hundreds of percent over the last week. Voskvitov says:
„In recent years, the news background has been mainly related to bitcoin, now it’s really time for altokoin. Despite the proximity of Bitcoin to the highs of December 2017, the mood of the cryptographic markets is now at the end of 2016, when the era of altokoin and mass mining was just beginning. Althcoins have just begun their upward journey and may approach their historic highs before Christmas.“
He warned that a correction may begin after the rally. Judging by the fall in the Bitcoin Domination Index, we have an interesting dynamic ahead of us around the altokhoins, the expert suggested. According to him, coins worth a few cents may show the highest percentage growth, as it is more comfortable for psychologically unprofessional investors to think that the theoretical benefit from the growth of such an asset can be much higher than that of coins worth hundreds of dollars.