A favorable information background contributes to the current growth of flagship cryptocurrencies, however, one should not expect a rapid rise in digital gold until the bitcoin network update, expected in November 2021. Yuri Mazur, head of the data analysis department of CEX.IO Broker, said this in a comment to Cryplogger.
According to the expert, the inflow of new funds to the market in August is due to the disclosure of the internal potential of assets, first of all, it concerns the successful upgrade of the Ethereum network. Bullish incentives also include the upcoming Taproot soft fork and the launch of smart contracts on the Cardano network scheduled for September.
“The evolution of cryptocurrencies is likely to have a long-term effect and make digital assets more independent from external factors,” Yuri Mazur believes.
He stressed that the negative on the part of regulatory bodies and states is practically played out in quotes:
- The PRC has already taken all possible steps to squeeze out competitors of the digital yuan from the local financial market.
- The US authorities are unlikely to follow the Chinese model, wanting to avoid comparison and criticism.
- An attempt by the British regulator to influence the bitcoin rate was unsuccessful, investors ignored its actions.
“Now the driver of further growth of bitcoin, most likely, will be the expectation of updating its network, however, one should not expect strong directional movement before the introduction of the new algorithm. Most likely, the rate of the first cryptocurrency will be limited to values near the $ 58,000 level, ”Mazur said.
More interesting, according to him, are the nearest prospects for Ethereum. The analyst explained this by the fact that the ecosystem of the second cryptocurrency showed versatility and greater adaptability than Bitcoin and other coins.
Any attempt by digital asset developers to add smart contracts to their networks will go “into the treasury of Ethereum,” in which they were first used on the blockchain, he added.
“Investors are likely to try to test the strength of the $ 4000 level, and then send the quotes of the second cryptocurrency in terms of capitalization above $ 4500,” the expert suggested.
Earlier, experts from Delphi Digital concluded that the derivatives market contributed to the growth of Ethereum.