After a significant drawdown in Bitcoin, several arguments were formed to support growth, but they did not are signs of the end of the correction, but only indicate a possible change in the last trend.
Every major Bitcoin rally is followed by a crashin which investors are actively shifting to altcoins and stablecoins. This leads to a decrease in the share of Bitcoin in the total capitalization. Cointelegraph notes the similarities between the 2018 and 2021 cycles.
Image source: cointelegraph.com
Now the share of Bitcoin is 44%, which is close to the lows of the previous cycle. At the same time, there are coins on the crypto market that have already fully won back the May fall, for example, MATIC (Polygon).
Image source: cryptocurrency exchange StormGain
Analyst Harold Berger in his article used a logarithmic function to plot a long-term Bitcoin chart in order to get clear price and time corridors.
Image source: medium.com
Based on the author's forecasts, the cryptocurrency will reach $ 100,000 within 2021 - 2028. and $ 1 million - within 2028 - 2037.
The main difference between the last rally from allthe previous is the influx of institutional investors. They succumbed to panic to a lesser extent in May, and are now resuming purchases of cryptocurrency through investment funds.
Image source: glassnode.com
The world's largest Grayscale Bitcoin trustat the beginning of the year attracted over 50,000 coins to its reserves. Due to the growing demand, the premium with the spot market reached 30%, but together with the market in May it collapsed to -21%. Now it has recovered to -4%, which indicates a return of institutional buyers.
For the cryptocurrency market, the correction that took placeis not exceptional in its strength, it gives a chance for a quick return to growth. In addition, Bitcoin is still viewed by institutional investors as insurance against inflation: since the launch of Antique Aid in the US in the spring of 2020, the amount of dollars has grown by a third, while Bitcoin is still showing more than 300% growth. At the same time, Joe Biden introduced a record budget since 1946 for the next fiscal year in the amount of $ 6 trillion.
Analytical group StormGain