Bitcoin Blackline Behind: Chainalysis Economist Evaluation
Changes in the Bitcoin exchange rate in the current conditions are a completely natural state. Some analysts are convinced that the price of BTC can be predicted, while other experts recommend abandoning the construction of ephemeral forecasts. Let’s figure it out together.
Is it possible to predict the market behavior of Bitcoin?
Bitcoin is the undisputed leader among other cryptocurrencies. But his market behavior remains the subject of heated debate, forecasts, and even speculation. In particular, this was demonstrated in 2020: at the beginning of this year, the price of Bitcoin reached $10,300, now the rate is in the range of $6,000. Of course, now the behavior of Bitcoin has stabilized a little because 2 weeks ago the price of BTC fell to a record low.
Of course, the panic caused by the spread of Coronavirus and the fall of traditional financial markets caused a powerful blow to Bitcoin’s market indicators. The recession period is very unpredictable: you cannot accurately predict what will happen next. In such conditions, many investors and traders resort to the massive sale of digital assets, stocks, bonds to save their investments.
Now Bitcoin is shaking off the recent failure and is confidently heading for the restoration of its previous positions. Many analysts believe that after the sale of Bitcoin by many investors, new buyers will enter the market. Thus, shortly, we will see how the demand for Bitcoin will grow again and the price of BTC will increase accordingly.
Current market behavior Bitcoin commented on a leading economist at Chainalysis, Philip Gradwell:
“Now it is difficult to make predictions regarding the future behavior of the Bitcoin exchange rate. The COVID-19 pandemic is “adding fuel” to the situation; we cannot say for sure what will happen next to the global economy. There are still positive changes: the number of crypto exchanges has increased significantly lately. Now you need to monitor the volume of transfers that are carried out on exchanges. ”
Philip Gradwell also believes that the collapse of the BTC in mid-March was triggered by an upward trend in asset dumping by institutional investors. He also notes that in the future, the influence of traders on the future of Bitcoin will be more tangible. He added:
“The future of crypto exchanges remains in the hands of professional traders. They carry a lot of responsibility, unlike those involved in retail exchanges. ”