Crypto Portfolio Reviews: Why bitcoin right now?

FOMO and the actions of the whales will help push bitcoin to new highs. Historically, November has been one of the best months and one of the most volatile for Bitcoin of the year.

After a drop in the hash rate and a difficulty adjustment, which led to an increase in revenues, as well as against the background of a very strongly increased coin price, miners will enjoy a very significant increase for some time until the next difficulty adjustment. Since the beginning of the working week, Bitcoin and other cryptocurrencies have shown quite anemic dynamics, but if we take the values for the week, then in almost all cases within the TOP-10 we see double-digit growth. So, Bitcoin has grown by 14% over the past 7 days, while Ethereum has added 20% at all. The total capitalization of the cryptocurrency market has confidently overcome the round value and remains about $ 450 billion, the next most important psychological level will be $ 500 billion, overcoming which an even stronger FOMO can already launch.

Bitcoin increased by 7.7% over the day and is trading at $ 14,900. The benchmark cryptocurrency is rallying this week with the S&P 500 and Nasdaq. Not surprising, since Bitcoin is now included in the portfolios of large investors as a risky asset. Additionally, over the past week, Bitcoin's dominance index has risen by almost 3%, approaching 65%. Capital flows towards Bitcoin. Since along with the growth of the indices, we see an increase in prices, this should be taken as a positive signal. Very soon, interest in the cryptocurrency market may become wider again, moving from the first cryptocurrency to the top 10 and then to a wider list of altcoins. The first signs of this movement can already be noted.

Bitcoin will be able to protect capital from depreciation against the background of the weakening of the dollar, which occurs in the long term. Bitcoin could climb to $ 15,000 in 2020. It looks like it's time for the dollar to weaken. Bitcoin could rise significantly higher in the short term.

More and more investors are switching to long-term storage of bitcoins. According to the CryptoQuant platform, the flow of BTC to cryptocurrency exchanges has dropped to a three-year low. If BTC consolidates above $ 14,000, then a more confident rise in the value of altcoins will begin. According to The Block, the profitability of Bitcoin mining has approached the highest levels since halving due to the recent jump in the price of the cryptocurrency, as well as fees, which are now at their highest levels since 2018.

Bitcoin is preparing to celebrate its twelfth "birthday" with explosive growth. For the end of October, the first cryptocurrency has risen in price by more than 25% and may close the month with the maximum growth since April. October 31, 2020 will mark exactly 12 years since the publication of Satoshi Nakamoto's white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" for cryptographic mailing list participants.

At this stage, for Bitcoin, the ideal scenario would be to break the correlation with the traditional market and move in the opposite direction. The sluggish decline in the US stock market highlights the benefits of cryptocurrencies, fueling their rally. Investors are looking for assets that could yield returns in the face of extreme geopolitical and economic turbulence, and Bitcoin could be an excellent destination, at least for portfolio diversification.

The index of greed and fear for Bitcoin and the largest cryptocurrencies grew by 9 points in a day, returning to the “greed” mode, but so far there is room for growth. The RSI has entered the overbought area, approaching the 80 mark, but a sell signal should only be considered a decrease to the area below 70, and before that we can observe a very sharp rally. At this stage, for Bitcoin, the ideal scenario would be to break the correlation with the traditional market and move in the opposite direction. The sluggish decline in the US stock market highlights the benefits of cryptocurrencies, fueling their rally. Investors are looking for assets that could yield returns in the face of extreme geopolitical and economic turbulence, and Bitcoin could be an excellent destination, at least for portfolio diversification.

Bitcoin outperforms gold as an alternative currency and has a significantly better chance of continued growth. It is chosen mainly by young investors, while the older generation prefers to keep their assets in gold. The physical gold market, including secured ETFs, is worth $ 2.6 trillion. In order for bitcoin to equal it, it must grow 10 times from the current levels. Even modestly crowding out gold as an "alternative" currency in the longer term suggests a double or triple rise in Bitcoin.

Bitcoin surpassed year highs after payment company PayPal confirmed the upcoming launch of a feature to buy, sell and store Bitcoin and other cryptocurrencies. Its mobile payment service Venmo will add this capability in 2021. PayPal expects the new feature to spur global use of cryptocurrencies and prepare the network for central bank digital currencies. Supported cryptocurrencies include Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. The service will become available to customers in the United States within a few weeks, and globally in the first half of 2021. PayPal customers will be able to use BTC to pay for goods at 26 million merchants. Cryptocurrency transactions will be automatically converted to fiat. This means that merchants will not have to go beyond the traditional system they are used to, PayPal noted.

While it is generally accepted that big institutions or “big money” can push Bitcoin's capitalization to new highs, you need to think about it with a caveat for 2017, when the emergence of professional investors burst the Bitcoin bubble. A third halving occurred in May and has the potential to create conditions for a new bullish cycle. Investors are waiting for a growth impulse 12-15 months after the halving, and everything can really turn out in favor of growth, but you need to understand that a lot of opposing forces have appeared on the market, which will act as a balancing force at extremes.

We are on the cusp of a new Bitcoin price rally. Several large companies have already invested in bitcoin. For example, on October 8, BTC was bought for $ 50 million by payment firm Square, founded by Twitter creator Jack Dorsey. In September, MicroStrategy, a maker of analytical software, acquired BTC for $ 425 million. Institutional adoption of BTC continues. Cryptocurrency attracts large investors with its independence and higher profitability compared to securities and other instruments.

Several factors may be behind the Bitcoin recovery. An indirect reason for the rise of the first cryptocurrency could be the decline in the dollar over the past few weeks, which could have contributed to the growth of gold and the first digital currency. In addition, Bitcoin has demonstrated long-term ability to hold above critical psychological and technical levels by $ 10K. The bears tried unsuccessfully to test the level for several times, but ran into buyers' help.

The crypto community is overwhelmingly positive about the events that are associated with the investments of companies from the traditional sector in cryptocurrencies. According to Glassnode, bitcoin hashrate set a new record at 170 EH / s. That is, miners continue to increase their capacity, believing in the prospects of the first cryptocurrency. The Greed and Fear Index for Bitcoin and the leading cryptocurrencies grew by several points over the course of a day, switching to “neutral” mode at 48. The indicator demonstrates that there is room for further growth of the first cryptocurrency.

The difficulty of mining Bitcoin remains at an all-time high, reflecting the confidence of miners in the prospects for the first cryptocurrency. A tangible rise in this indicator began at the end of September, although this month itself was unsuccessful for BTC. After the fall in May, following the decline in the reward for the mined block, we see only a steady increase.

Bitcoin lost more than 8% in price in September. The DeFi sector could not but have a negative impact on the dynamics of BTC. Nevertheless, the initial excitement may already be declining, and the attention of investors will return to Bitcoin by the end of the year.

It is possible that Bitcoin is now moving towards becoming an asset that will increasingly acquire the properties of "familiar", although it is unlikely to completely manage to avoid periods of periodic increase in volatility.

Bitcoin started a new week on the rise, approaching the round $11000 level. Over the past five days, the first cryptocurrency has risen in price by 7%. According to analyst firm Glassnode, the number of bitcoins left without movement for three to five years peaked in 22 months. The dynamics of the mentioned metrics may indicate a growing number of users who prefer to hold Bitcoins rather than move, trade or coins.

Bitcoin dominance index is on the rise. Over the past week, this indicator has grown by almost 1.5%. points to 58.84%, which may indicate an increase in uncertainty among participants in the crypto market. Periods of rising altcoins and declining market share of Bitcoin are considered positive for the crypto market as a whole, as they reflect interest in a wide range of assets. Now money is returning to Bitcoin as it is more reliable in this sector than altcoins.

The weakening of the BTC rate is associated with the activation of miners, which has been going on since the beginning of August. Mining pools bring cryptocurrency to exchanges for its subsequent sale, which increases the pressure on bitcoin. On Sunday, exchanges accepted 784 BTC from miners' wallets, which is significantly higher than the average value for the last 30 days of 265 BTC. Bitcoin may continue to decline if investors withdraw from risky assets to the dollar, as was the case in March.

It is worth paying attention to the decrease in volatility in recent days, along with a cautious rise in prices. It looks more like a careful buying following the optimism of global markets, rather than relying on the prevalence of positive factors. Physically Delivered Bitcoin Futures on Bakkt saw record daily trading volume. Bakkt said there were over $ 200 million in Bitcoin contracts traded as of September 16, up 36% from the previous high. Thus, we see an increase in interest from institutional investors after some stagnation.

Bitcoin and gold will crash when an effective coronavirus vaccine arrives. However, then the best time to buy these assets will come. Such a drop in gold and bitcoin will be an excellent opportunity to buy these assets, which remain the "best" long-term investment that will help protect capital from the economic problems of the United States associated with large national debt.

Almost 10% of miners' rewards are spent on transactions for placing bitcoins on centralized exchanges, which creates the preconditions for further increasing pressure on bitcoin. On Sunday, the bulls tried to push the rate above $10500, but they again failed to overcome the resistance at this level. Bitcoin remains locked in a fairly narrow range just above $10000.

Everyone remembers halving, high price break-even for miners and the continuing need for large investors to find directions to diversify their portfolios. All of these factors will have to support Bitcoin in the event of a failure below $ 10K. In addition, there is a high demand for the purchase of cryptocurrency at a discount. Even the most notorious opponents of cryptocurrencies admit that the market has repeatedly found the strength to recover from the most severe and protracted depressions.

More and more experts declare that the risks of a Bitcoin rollback to $10000 in the coming days are increasing. In addition to being overbought, another alarming signal is the drop in transaction activity in the bitcoin network. According to the BitinfoCharts service, the number of daily transactions on the blockchain fell to 268158 at the end of August. The lion's share of the capital flowing into the cryptosphere is directed to altcoins. Bitcoin will benefit almost nothing from the new leap in the cryptocurrency market. However, we may be on the cusp of a new rally in bitcoin towards the $15000 mark.

The main task of bitcoin is to surpass gold in terms of capitalization. If we take into account the fact that now the value of all BTC is just over $200 billion, and the capitalization of the precious metal reaches $ 9 trillion, then the cryptocurrency needs to grow in price 45 times. Thus, one bitcoin should be worth about $500000. If BTC surpasses gold in terms of capitalization, then it will finally consolidate its status as the best safe-haven asset.

Bitcoin ended 2019 with around $7000. Last year, the maximum was around $14000 and should be exceeded in 2020. Unless something extraordinary happens, bitcoin will continue its ten-year growing trend. Both the level of demand and the level of acceptance are growing and these are favorable factors for BTC.

The bitcoin RSI index is now copying the dynamics after the halving in 2016. It is worth recalling that as a result, the benchmark cryptocurrency reached an all-time high of $ 20K. Another analysis from Glassnode showed that at a current price of about $ 12K, the decision to buy bitcoin has been profitable 97.6% of the time since April 2013. Since the beginning of 2020, bitcoin has brought its owners 63% of the profits, despite all the turmoil that the global economy faced in 8 months of 2020.

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