Well-balanced cryptoportfolio: Price, Change and Charts

The positive dynamics of Bitcoin supported the entire altcoin market. The leading alternative cryptocurrency Ethereum (ETH) shows an increase of 5% per day and is traded at about $ 1,750. ETH jumped an impressive 22% over the week. Thus, we saw that there is unrealized purchasing potential in the market. Even more positive is the fact that bargain hunters found the price level around $ 1,300 to be acceptable to boost shopping.

The popularity and prominence of cryptocurrencies continues to grow. According to BDCenter Digital, 12 out of 100 Twitter posts are about cryptocurrency. In just the week of February 7-14, Twitter users mentioned bitcoin over 675,000 times. The last record was set on January 10, when the weekly number of posts mentioning bitcoin reached 576,000. In total, the number of cryptocurrency users has stepped over 200 million people from more than 150 countries.

Yesterday's decline occurred against the background of an increase in the flow of bitcoins to exchanges. According to CryptoQuant, over the past 24 hours, trading platform balances have grown by 37 thousand BTC, which was the largest inflow this year and is comparable to the levels of March 2020, when the market experienced a major collapse. The enthusiasm for bitcoin is becoming "more and more sectarian" and is grounded in "magical thinking," said Will Hobbs, investment director at Barclays Wealth & Investments. The first cryptocurrency could turn out to be a wingless bird if interest rates rise. One of the main barometers of greed in the market, the S&P 500, has begun to decline, which raises the degree of fears about the possible start of a wide correction, which, no doubt, will spread to the crypto market.

The supply / demand balance also remains in favor of Bitcoin, since 150K BTC were mined in the last 5 months of 2020, and almost 360K were bought back. In addition, the infrastructure for institutional investment continues to develop. Bitcoin ETFs have been approved by regulators in Australia and Canada. In addition, the statement by St. Louis Fed Chairman James Bullard that Bitcoin is a rival for gold, not the dollar, can be considered positive for BTC. Now we have come to the point where even the pessimists have paused their selling decisions. Perhaps the market has moved to a stage where most are aiming in one direction: up. However, this situation is so dangerous because massive FOMO and greed bring to the market a shadow layer of large investors who, using the investment infrastructure created over the past years, can start playing against the market. Thus, it is absolutely not necessary that the growth will stop in the near future, but right now, at the moment of general enthusiasm for the prospects of the crypto market, it is worth taking special care.

After Musk's statement, Twitter's interest in bitcoin, promotion of launches of various bitcoin exchange-traded funds, we can talk about the formation of legal loyalty to the first cryptocurrency. Of course, regulators may well change their minds, but at this stage everything is moving towards opening ways for corporate investors to invest in bitcoin.