What will happen to the price of Bitcoin – continued growth or correction?

Yesterday, December 17, the price of Bitcoin broke through the $23,000 level for the first time in history. In just one day, the asset surpassedthree significant levels - $ 20,000, $ 21,000 and $ 22,000. We will learn from market experts about the reasons for such a rapid growth of the first cryptocurrency and ask them to give forecasts on the further dynamics of its price.

According to the director of the largest cryptocurrency exchange Binance in Russia and the CIS, Gleb Kostarev, the macroeconomic situation around the world contributed to the receipt of a confirmed status of a defensive asset by bitcoin.

“In our opinion, the rise in the price of bitcoin is largelyassociated with the attention of institutions. In addition to MicroStrategy, Square, PayPal, Ruffer Multi-Strategies, SBI and many others, which directly influenced the price growth and the change in the status of the historical coin, over the past few months many other organizations have added bitcoin to their portfolios without announcing it. ", - said the expert.

Gleb Kostarev cited the Grayscale Bitcoin Trust as an example, which in less than a month increased the capitalization of assets by $ 1 billion.

"This may indirectly indicate that new market entrants using new platforms for regulated exposure to Bitcoin are the ones who control prices."- he added.

What big financial institutions have becomeConsidering Bitcoin as a legitimate financial instrument is positive news for the entire industry, says Dmitry Goroshevsky, CTO of TON Labs:

“Institutionals see bitcoin as a replacement for gold, as a financial instrument. However, as we know, gold constitutes only a small fraction of the assets of the world economy. "

In this regard, Goroshevsky assumes an early massive migration of core assets to the blockchain.

“And this blockchain will no longer be Bitcoin or Ethereum, but modern high-speed networks such as Free TON. Their capitalization will exceed the capitalization of bitcoin many times ", - believes the CTO of TON Labs.

Bitcoin economy, in particular the mechanismhalving, makes the first cryptocurrency a unique and rarer asset, which also pushes the price up, continues Tokenbox co-founder and managing partner Vladimir Smerkis.

"Bitcoin is already finally leaving the gray zone in which it began - from paying for illegal goods and services - and is becoming a full-fledged independent, most honest financial instrument"- he noted.

The initially undervalued cryptocurrency industry is now beginning to emerge as a professional financial market.

"I think we can see $ 30,000 in the coming months.", - Vladimir Smerkis predicts.

At the same time, the expert reminds that a rapid rally will necessarily be followed by a correction:

“I would recommend bitcoin holders to gradually fix their profits, place orders slightly lower, because a correction is inevitable. We'll also see bitcoin trading in the $ 19,500 - $ 20,500 range. "

The head of the data analysis department of CEX.IO Broker, Yuri Mazur, connects the growth of bitcoin with the liquidity accumulated by market makers from November 25 to December 15.

“After Bitcoin hit $ 19,800,many long positions were closed in order to fix profits and the volume for buying decreased, so new liquidity was needed to form the volume to continue the upward movement ", the analyst explained.

Taking the first cryptocurrency mark at $ 23,000due to the well-known rule among crypto-traders, according to which the trend direction is the most probable direction of further price movement.

“In this case, the trend was upward, thereforethe price continued to go up. Also, an important technical factor was the type of correction that took place from November 25 to December 15 - an ascending triangle. This corrective pattern has a great incentive for the price growth and contributed to the continuation of the upward movement after the end of the correction ", - said Yuri Mazur.

The current growth of Bitcoin is creating an attack of FOMO - the fear of missing out on a profitable purchase, said Exante co-founder Anatoly Knyazev.

“An important role in the upward movement of the exchange rate was played bypositive on traditional financial markets - American indices set new records, European indices rose by almost a percent, the dollar fell to its lowest level in the last 2.5 years. There is a clear demand for risk in the markets, and interest in cryptocurrencies is part of it.”

The expert believes that the rally will be supported by the search for income-generating assets, as stock markets have become fundamentally expensive and bond yields have fallen to historical lows.

"Moreover, the policy of central banks to flood markets with liquidity provokes distrust of traditional currencies.", - added Anatoly Knyazev.

The founder of the Stasis stable cryptocurrency platform, Grigory Klumov, said that the purchase of bitcoin by institutions is always a catalyst for its growth:

"Recently billionaire and hedge fund managerBrevan Howard Asset Management Alan Howard not only invested in cryptocurrencies, but also became an investor in the company One River, which buys assets in Bitcoin and Ether, and whose portfolio is worth $600 million. So I am confident that the fun in the crypto market is just beginning.”

After overcoming three important psychologicallevels of bitcoin found itself in a "free flight" where there are no known landmarks. The arrival of institutionalists on the crypto market could theoretically mean that now bitcoin is driven not only into the legal framework, but also into the price framework, points out the head of the Six Nines data center Sergey Troshin.

"But since bitcoin is already trading above $ 22,000, the real growth limits could be much higher.", - he thinks.

The expert found it difficult to predict at what level the growth of bitcoin will stop, but still, by the end of the year, he expects a slight correction to the levels of $ 20,000 - $ 22,000.

"In the first half of 2021, bitcoin is likely to grow, and there is little to prevent that.", - summed up Troshin.

Most experts are positiveprospects for further growth of Bitcoin. Previously, entrepreneur Robert Kiyosaki predicted the quotes of the first cryptocurrency at $50,000 next year, and Guggenheim Partners investment director Scott Minerd said that the fair price of the coin is at $400,000.

Where can you buy cryptocurrency?

The most popular cryptocurrency exchange in the territoryRussia and the CIS is https://www.binance.com, the site ranks first in the world in terms of trading volume and supports transfers in rubles from Visa / MasterCard bank cards and payment systems QIWI, Advcash, Payeer.

TOP-5 cryptocurrency exchanges working with rubles:

#	Cryptocurrency exchange	Official site	Site evaluation
1	Binance (Editor's Choice)	https://binance.com	9.7
2	Huobi	https://huobi.com	7.5
3	Exmo	https://exmo.me	6.9
4	Yobit	https://yobit.net	6.3
5	OKEx	https://okex.com	6.1

The criteria by which the rating is set in our rating of crypto-exchanges:

• Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
• Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
• Feedback and support– we analyze user reviews and the quality of technical support.
• Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
• Platform Features– availability of additional features — futures, options, staking, etc.
• final grade– the average number of points for all indicators determines the place in the ranking.

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