29.03.202113:02 Forex Analysis & Reviews: Crypto market on verge of collapse

The world's most praised cryptocurrency is still correcting. Despite the fact that BTC is located close to the all-time highs, it is unlikely to set another record in the near future. Still, anything can happen in the market. Currently, there are a lot of speculations that the world's first digital coin will rise in value. However, there has been no proof of such predictions. Those who claim that the coin can spike in the future are mostly those experts and investors who hold BTC. The more people believe in a surge of bitcoin, the more there is hype surrounding it. All the hype can boost the virtual asset, allowing those who have long invested in BTC to reap profit. That is, holders of bitcoin have to attract new buyers so that the token can continue growing. It looks like a financial pyramid principle. This means that the price of BTC depends on the number of people who believe that it can skyrocket to $100K or even to $200K. On top of that, central banks and governments worldwide are unlikely to leave cryptocurrencies be. For example, India is contemplating a ban on cryptocurrencies. Other countries may well impose taxes on virtual assets and try to substitute them for national digital currencies. The main reason for bitcoin's popularity is anonymity and a high price. Simply put, it is used as a payment means by those who have something to hide or those who simply want to make money on it. All this should be taken into account so that one can understand that bitcoin can plunge any time.

The fundamental background has not been favourable for bitcoin lately. Janet Yellen and Jerome Powell have criticized BTC once again. India is preparing to release a ban on cryptocurrencies. Some experts suggest that the Fed would fight digital assets by all possible means. In addition, the American economy is recovering rapidly. As a result, demand for such a risky asset as bitcoin may decline considerably. At the same time, the US central bank continues to pump cash into the economy and this money needs to be spent. Market participants fear that growing inflation in the US will force them to invest in more profitable assets, such as bitcoin, in the near future. Generally speaking, there are enough positive and negative factors for both a surge and fall in the value of bitcoin. The most important here is the balance between them. Otherwise, the bullish trend will either resume or end. Chatex's CEO Michael Ross-Johnson believes that BTC should have started falling a long time ago since many investors switched to their usual assets again. He assumes that small and retail investors will determine how big a fall in bitcoin will be because they will be the first to get rid of it.