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Monday, October 18, 2021

BTC Price Forecast for March: Bitcoin is approaching $ 62,000, alts are lagging behind

In the afternoon of March 13, Bitcoin broke through the next “round” level at $ 60,000, and by the evening rose above $ 61,000.

However, most altcoins are noticeably lagging behind in growth. In the absence of negative fundamentals and after the approval of the US President’s $ 1.9 trillion economic stimulus package, the cryptocurrency market continues to grow, led by bitcoin.

At the same time, all the leading altcoins, although showing growth, still did not even reach the highs in February, when Bitcoin was trading well below $ 60,000. In contrast to the speculative growth of 2017, when bitcoin was “dispersed” in anticipation of the launch of cryptocurrency futures on the US commodity exchanges, now the adoption of bitcoin by large investors has increased significantly.

Tesla and Microstrategy alone own more than $ 7 billion in bitcoins. And including other corporate holders and funds such as GBTC, institutional investors own tens of billions of dollars worth of bitcoins, with a current BTC capitalization of about $ 1.15 trillion.

This is only a few percent, but do not forget that of the 18.65 million already issued bitcoins, according to various estimates, 3-4 million BTC are irretrievably lost. Recall that 85% of companies intend to start or continue to invest in bitcoin in the next two years.

The mass adoption of bitcoin and cryptocurrencies in general is also growing, more and more people are investing free money in cryptocurrencies or trying to make money on speculation. But large holders continue to concentrate BTC, taking them out of circulation.

There are even attempts to bring decentralized cryptocurrencies to the state level and introduce bitcoin into the reserves of the Central Bank , although they can hardly be taken seriously in the coming years.

For example, the President of the ECB has made it clear that the European regulator is not going to consider Bitcoin as a reserve currency. In the camp of “potential killers” and simply competitors of bitcoin today, not everything is so rosy.

Ethereum has grown by almost 12% over the past 24 hours, but is still far from re-surpassing the $ 2000 level, which it briefly broke through in February.

Binance Coin slowed down by $ 280, although on February 19 it managed to get to almost $ 350. Litecoin, which also jumped to $ 350 in February, is now trailing around $ 230. Polkadot, which showed $ 42 on February 20, is at $ 38. BCH, TRX, ATOM, LINK, XTZ and many other altcoins hold about the same gap with previous highs.

However, when studying the charts of the leading cryptocurrencies, it is easy to see that the “altseason” always comes with a delay after the next jump in bitcoin. Often the peaks of the “grandfather” and the main altcoins are visible with a difference of several days, sometimes the gap reaches 2-3 weeks.

This is explained quite simply: the liquidity of the market leader is always higher, so it is easier to fix a large profit in BTC than in other cryptocurrencies. On the growth of bitcoin, a lot of traders “jump on the train”, taking money from other assets, including altcoins.

And after the bitcoin “overclocking”, large speculators pay attention to other coins, which are much easier to raise the price of.

 

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