22.03.202113:25 Forex Analysis & Reviews: Why major cryptocurrencies are not showing growth: reasons and predictions

Cryptocurrencies will be able to add the first month of spring to their assets with great difficulty. Despite the end of the February correction, the market has not shown stable growth. Bitcoin and altcoin quotes remain approximately in the same price range, and right now there are no prerequisites for the beginning of a protracted growth of digital assets.

For the second week in a row, the indicators of cryptocurrencies cannot overcome the psychological boundaries, which they reached at the end of February. This is primarily due to the unstable economic situation in the world caused by the third wave of the coronavirus pandemic. The comments of the former CEO of the crypto exchange BTCC, who said that the cryptocurrency market could move to a protracted decline in prices after the current phase of development, also added to the negative. The former CEO is confident that the bullish pace of the market can raise bitcoin to $300,000, after which the "bubble" will burst, and the quotes of the crypto asset will go to a steep peak within several years.

Without taking into account the above, a positive information background continues to form around digital coins. For example, it became known that the Canadian corporation Thornton Place, as part of a 10-year investment program, purchased 0.4 bitcoin for a reserve fund. This news is a consequence of research by JPMorgan experts, who, in early March, advised large companies to purchase a certain number of bitcoins to hedge risks from price fluctuations. Also in the US, the regulator may soon make a crucial decision for the development of the cryptocurrency market. The SEC has accepted VanEck's application for the creation of the first US Bitcoin ETF and is expected to make a decision within 45 days.

There is also positive news for XRP coins. The SEC said that investors and crypto exchanges do not break the rules by trading the Ripple token. In addition, cryptocurrency exchange Coinbase has settled a dispute with the Commodity Futures Trading Commission and will pay a $6.5 million fine.

Despite the positive news, which in the future promises the market a lot of investment injections and an increase in demand, the main cryptocurrencies are losing ground. Over the past day, Bitcoin has lost 0.35%, to $57,000.

Ethereum sank 0.9% in price and began a new growth from $1,780.

The Ripple coin, despite falling in price by 0.5%, began to show good growth amid positive news from the SEC and progress in resolving the litigation. Now the token has reached the $0.530 mark and continues to grow.

Litecoin sank 2% and again reached its usual level of $190. Now the asset is again trying to hold on to the $190 -$205 line.

It can be assumed that in the next few days, prices in the cryptocurrency market will continue to fluctuate. This is evidenced by the two-week trend of ignoring positive news. The quotes of digital assets are likely influenced by the lack of interest from institutional investors, who are cautiously looking towards the market, due to the poor economic situation. Despite the lack of growth, cryptocurrencies retain the chances of rapid growth and have not fallen below certain indicators for more than a week. This suggests that the coins have strengthened in their current positions and this may allow them to maintain safe boundaries in the event of an inevitable fall in prices after historical records.

The main signals for the growth of digital assets will be the cleared-up situation with the introduction of lockdowns in European countries, as well as the SEC decision regarding the VanEck application for the creation of the first ETF bitcoin in the United States.