RISE IN BITCOIN: WHAT FUTURE PROSPECTS?

Bitcoin, the big winner of the crisis, has gained nearly 85% since January 1. As the price of the most famous cryptocurrency hits key thresholds, major long-term dynamics appear to be emerging. All this despite some sensitive points in the medium term. In addition, many crypto currencies should be subject to variations soon.

Discover our analysis of Bitcoin and other virtual currencies to follow for your investments. BITCOIN COURSE: OVERCOMING STRATEGIC LEVELS Bitcoin price comparison, Dow Jones price and gold price Bitcoin has started a new strongly bullish momentum in recent weeks, going from nearly $ 10,000 at the start of September to more than $ 13,000 by the end of October, i.e. a price almost doubled (+ 85%) since January 1 . For its part, gold is up nearly 26% while the performance of the Dow Jones and equities in general remains negative or close to zero. As the massive cash injections have largely slowed down and many assets stagnate due to lack of visibility, Bitcoin is outperforming.66292f4731e8d1029557776f76aaedffd6f1d22bbf6c784fff15040872292d1e.jpeg

The price of Bitcoin at psychological and historical levels These price levels are strategic for Bitcoin. We come to the resistance of $ 13,150 / $ 13,200 which was tested for the first time in 2019. First of all, the fact that Bitcoin seems to insert itself permanently above $ 10,000 gives Bitcoin some attention. very particular on the part of the markets… Strategic threshold for a new speculative bubble? Strategic threshold to trigger a wave of democratization and development? Bitcoin is a very young asset, which may explain its relatively high volatility. The link with economic fundamentals tends to show that Bitcoin is halfway between stocks and precious metals. It obeys both a search for security and a search for innovation. The fact that Bitcoin is taking a major place in the financial landscape also reinforces its dependence on short-term liquidity logic. This bullish movement, in the midst of an extremely troubled period, sets off an interesting long-term dynamic. Finally, Bitcoin is distinguished by the presence of a gradually limited supply. If to this we add a form of Bitcoin hoarding of agents and a maintenance (or even a strengthening) of demand, this only reaffirms the security and innovative nature of cryptocurrency. The recent rise in Bitcoin is done in the context of fairly high buying volumes. Since this increase, the volumes traded tend to decrease, which may show the security interest of previous buyers.

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All this while the classic monetary system is threatened by hyper-expansionist policies. BITCOIN: THE POSSIBLE PROSPECTS * Your capital is subject to risk Strengthening Bitcoin in the Financial Landscape According to a study by the University of Cambridge, there would be nearly 100 million crypto holders in the world in the first half of 2020. They were estimated at 35 million in 2018. This presence in portfolios is essentially true in Europe and in the United States, as well as in certain Asian countries such as China and South Korea with very strong support from the population. Although Bitcoin is still very highly concentrated and owned by only a few agents (0.5% of addresses hold 85% of BTC wealth), the fact remains that the democratization of Bitcoin is intensifying.

PayPal recently announced that it will add Bitcoin to its platform for 2021, which has been a major bullish factor. More than democratization as an investment tool, it is democratization as a tool of exchange. We better understand the fact that the financialization of many virtual currencies is an essential step in the success of populations. Bitcoin: prices pulled between risk and liquidity The current situation involves the degradation of many currencies, mainly the dollar, which has undeniably contributed to a rise in many assets. In addition to benefiting from this phenomenon, Bitcoin feeds on monetary fears and the resulting long-term economic effects. Bitcoin price graph and financial stress index SHOULD YOU INVEST IN BITCOIN

Crypto currencies with specific objectives The massive democratization of crypto-currencies also implies the emergence of companies specializing in the subject, which is reflected in the creation of numerous "tokens". Tokens are particular cryptocurrencies, usually issued by a company specializing in crypto, which are at the heart of the ICO (Initial Coin Offerings) system, this system for raising funds in the crypto industry. A sort of "crypto firm share" which is then traded and listed. The democratization of cryptos thus benefits many tokens. We can cite the example of SwissBorg which is maintaining its development after raising CHF 50 million in 2017 (CHSB). There are many developing ecosystems around cryptocurrencies which, for some, are already international. The key element will be to measure the seriousness of the shared ambitions and the means implemented to achieve them. If crypto democratization intensifies, then it is obvious that some cryptocurrencies affiliated with specialist companies will benefit in the long run.

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HOW TO DEHARK OTHER BECOMING CRYPTO CURRENCIES? Distinguish between crypto currencies There are several thousand cryptocurrencies. They are all different. The smaller ones have a high risk and are more like a bet than an investment. Mid-sized cryptocurrencies (in the top 100, for example) remain very attractive in relative potential, being able to quickly outperform the performance of larger cryptocurrencies like Ripple, Bitcoin or Ethereum.

SHOULD YOU INVEST IN BITCOIN OR OTHER CRYPTO CURRENCIES? What are the cryptocurrencies to watch at the end of the year and in 2021? Medium-term cryptocurrency investment opportunities As we have seen, apart from the new liquidity risk, which cannot be ruled out, the trend remains upward. A correction in the coming months would be a likely sign of a positioning opportunity. We can quote here some cryptocurrencies which retain a good consideration of the market: Bitcoin; Ethereum (its Blockchain is used more than Bitcoin); Binance Coin; Basic Attention Token (BAT); Enjin Coin (ENJ, which remains more volatile); Nexo, etc ... Ethereum remains an interesting alternative and has an even more innovative character than Bitcoin. Long-term cryptocurrency investment opportunities The underlying economic and financial conditions are very likely to fuel Bitcoin, and possibly other cryptocurrencies on the rise (financial stress, search for security, innovation, democratization, institutionalization, etc.). In the long term, therefore, it seems wise to us to invest in crypto-currencies given the current situation, which is still interesting.