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The crypto market capitalization has reached $2 trillion for the first time in its history. Such a gain was mainly caused by a rise in altcoins. At the same time, the first cryptocurrency showed a significant drop. Despite this, bitcoin may resume gaining in value in the foreseeable future.
It seems that the future trend of the cryptocurrency market is obvious amid positive news flow and growing investment attractiveness. At the same time, the main market token, XRP, may slump soon. Big players who bought the asset at its peak in 2018 are making a lot of fuss over the Ripple coin. Now, they are trying to push the price higher to leave the market with minimum losses.
From this point of view, bitcoin remains an extremely stable asset, which continues attracting investors, resisting the rising impulse. We cannot say that the first cryptocurrency is overestimated. Bitcoin hovered within the levels of $57,000-$59,000 for almost a week. Rising altcoins and bitcoin holders prevent the asset from a further jump. Moreover, investors that may buy bitcoin and ether, choose more advanced crypto assets, which have been appearing in the market. For example, recently, 100 companies changed Ethereum for such blockchains as Polkadot and Cardano. As a result, bitcoin lost 4 percentage points as the most popular asset.
The situation is also aggravated by the fact that institutional traders are returning to stock markets. Big companies prefer investing in the already known assets than in bitcoin. This, in turn, may lead to a decline in bitcoin to $40,000-$45,000. This scenario is really possible as the new plan proposed by US President Joe Biden may encourage investors to search for new trading instruments.
At the same time, BTC has more reasons for a rise as the news flow remains positive. Yesterday, MicroStrategy announced its plan to buy bitcoins worth $15 million. The Sacramento Kings of the NBA Basketball League will pay their players with bitcoins. In addition, the SEC approved the application of the Coinbase crypto exchange for public trading of securities in the NASDAQ under the ticker "COIN" under the direct listing procedure. These facts could become prerequisites for a rise in the first cryptocurrency.
Although bitcoin is not gaining in value, it is not dropping. The volume of daily trades goes on increasing ($57 billion). In the near future, the asset will have to wait for good conditions to make a jump. However, bitcoin may still slump to $40,000-$45,000. Nevertheless, its key target is to consolidate above $60,000.
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