Site icon CrypLogger.com

The expert called the reasons for the growth of bitcoin to a new high

Disclaimer

Forecasts of financial markets are the private opinion of their authors. The current analysis is not a guide to trading. Cryplogger is not responsible for the results of the work that may occur when using the trading recommendations from the submitted reviews.

The main reason for the growth of the bitcoin rate to the level of $63,000 was the growing demand from institutional investors. Yuri Mazur, head of the data analysis department at CEX.IO Broker, stated this in a comment to Cryplogger.

He recalled that on April 8, insurance companies Liberty Mutual and Starr Insurance invested $100 million in the New York Digital Investment Group (NYDIG) investment fund. In March, this platform received a total of $200 million from financial giants MassMutual, Morgan Stanley and other investors.

On April 9, the $48 billion U.S. alternative investment management company Millennium also invested in bitcoin through the Grayscale Bitcoin Trust. The amount of the investment was not disclosed, but the very fact of the transaction became a significant incentive for the growth of the bitcoin rate, the analyst believes.

“The technical factor was the converging triangle on the daily timeframe, the formation of which began on March 14th. The gradual reduction in the BTC/USD trading range led to increased pressure from buyers on the upper border of the figure in the $59,950 area,” he said.

CEX.IO expects Bitcoin to continue rising to $66,360 during April.

“This will be the 3.618 Fibonacci retracement level for the weekly time frame. Consolidation should be expected at this level,” Yuriy Mazur added.

In the context of Ethereum, we should expect continued growth to $2342 in the medium term.

“This mark is the 1.618 Fibonacci level on the weekly timeframe. Bitcoin and the dynamics of the DeFi market will have a significant impact on the market dynamics of ETH/USD,” the expert believes.

Recall that at the end of March, Bloomberg Intelligence senior commodities strategist Mike McGlone announced the transformation of bitcoin into a reserve asset with low risks and predicted its growth to $400,000.

In early April, analysts at the ARK Invest investment fund said that in the coming years, Bitcoin will surpass the capitalization of gold at $10 trillion and become the main financial instrument.

Subscribe to the Cryplogger channel at YouTube.

Found a mistake in the text? Select it and press CTRL+ENTER

Exit mobile version