TVT Expert Blog | ? The cryptocurrency market is being dispersed

The cryptocurrency market showed excellent dynamics in 2020. Bitcoin added about 40%, and top alts 70-150%. Is notmay not attract attention.

For stock market investors, such returns are rare. And therefore, they are paying more and more attention to the analysis of the cryptocurrency market.

Financial advisors in America recommend that family funds keep about 5% of their investments in cryptocurrency.BloombergandCNBCnever tire of discussing market prospects and movement potential. Opinion leaders are increasingly talking about Bitcoin as a protective instrument and comparing it to gold.

Currently we have a market in whichparticipants most often do not have the necessary qualifications, use huge shoulders. The vast majority of instruments have a high degree of correlation, which means that there is no way to diversify investments. This market is highly susceptible to manipulation, if the “strong hand” is profitable to drive the price up, then Bitcoin is growing. How can big money come here if everything is as it is?

But despite this, the market is developing and growing.They are launching new instruments: options, futures, custodial services. One by one, regulators are discussing ways to legalize the industry. Laws are passed, options for the practical application of technology are found, projects begin to earn money. This industry is moving from the hype stage to the business stage. Institutions like this.

Ether is up more than 100% since the start of the year.There is a demand for locking coins in the DeFi ecosystem, where you receive a fixed income from the locked coins. Dividends on the crypto market. From December 2019 to February 2020, the volume of money in these systems increased from 600 million to 1.2 billion. This is one of the reasons for the explosive growth of ether.

Ripple continues to enter into new contracts withworld giants and conquer new niches. Fundamentally, everything is fine with them, rumored to be preparing for an IPO. The last year for ripple was, frankly, terrible, but the coin, which has been in the top 3 for many years, today has pretty good potential. First of all, stagnation was caused by the fact that the team sold tokens for business development. They did not hide it. Selling openly, through a public program. Recently, they attracted money and reduced sales, which changed the balance of supply demand in the market and the price went up.

This list of projects that have developed lately can be continued, but the conclusion is the same: the teams did not give up and move on despite all the difficulties.

Technically, this growth can be regarded asstart impulse followed by correction. And this is normal. But with a high degree of probability the correction will be small, because now in the warmed-up market any reduction in price is considered as an opportunity to buy. There is enough money in the world, but there are few places where to attach money so that they generate little income.

 

The cryptocurrency market has stood the test of time andwon the attention of large funds. Look at the cluster graph recently. On it you will see that market liquidity has grown. Trading volume is growing steadily. Cumulatively participants buy.

So there are enough reasons for growth, although they do not look significant. 

Soon halving (in mid-May), for this event, they can adjust the price to shake out weak participants, but this will be a great opportunity for medium-term investments.

 

I wish everyone to make informed decisions!

Yanyuk Alexander

TVT Expert