March 28, 2024

CEX.IO company blog | Investors started buying digital currency again

After strong volatility at the beginning of the week and fluctuating around the $35,000 mark, the Bitcoin rate has returned againto around $40,000.As of January 15, the asset is trading at $38,000. Institutional investors took advantage of the drop in quotes at the beginning of the week, which opened up the opportunity to enter the asset at low levels. And meanwhile, Bitcoin’s capitalization again exceeded $750 billion.

Yuri Mazur, head of the data analysis department of the international crypto broker CEX.IO Broker, shared his expert opinion on the situation in the crypto market with the Kommersant correspondent.

The panic at the beginning of the week was quite predictable withgiven the enormous growth that Bitcoin has shown over the previous four months. Traders' fear of loss sharply exceeded their desire to make money. As a result, a general sale of the asset began.

The correction was usedinstitutional investors who took profit a few days earlier. The reversal of the rates showed that large investors are ready to buy bitcoin at a cost above $ 32 thousand. This, in general, indicates a continuing high demand for this asset.

It will be difficult for digital currency to break through recentlythe set maximum - we can expect a repeated fall from the resistance level of $ 41.45 thousand. If this level is broken and the quotes consolidate above it, then we can talk about continued growth. The increased inflationary risks for the dollar, as well as the protracted recession of the global economy, can still be considered a fundamental stimulus for the continued growth of the exchange rate.

Read the full material here.

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