Cryptocurrency Analysis

[IFX_Selena]

Cryptocurrency exchange Kraken prepares to enter the stock market



The bitcoin exchange rate has been around below the $60,000 per coin level for more than a week. To be more precise, it has been trading in the range of $56,500 - $59,500 for a week now. Thus, questions arise as to whether bitcoin is capable of continuing to grow. From our point of view, there are plenty of factors that speak in favor of its possible rise in price. Starting from the large savings of Americans during the pandemic, some of which they are ready to invest, ending with a new package of stimulus measures for $2 trillion and the growing interest in bitcoin among institutional traders. However, there is one factor that speaks in favor of the fact that bitcoin should collapse in the near future by 50% of the value. This factor is the same as it has always been. Bitcoin is not worth anything by itself. Official data confirms that 70% of bitcoin transactions are investment transactions. Traders and investors consider BTC mainly not as a means of payment, but as a means of investment. But since bitcoin is not a company's shares, not gold, and not even an ordinary currency, which is at least provided by the central bank, everyone understands that it can collapse at any time. Thus, the institutions can certainly afford bitcoin in their portfolios for many years, but will they want to do it? From our point of view, this is the main danger for BTC.

At the same time, the Kraken cryptocurrency exchange is preparing to enter the US stock market. Representatives of the company say that the exit can take place in 2022. At the moment, the company's management is considering options for a direct listing on the stock exchange or a merger with a company that does not have assets. The crypto exchange is currently engaged in increasing its capital and increasing its capitalization. The company was registered back in 2011 and ranks third in the world in terms of the volume of transactions passing through it, after the Binance and Coinbase exchanges.



As for technical analysis, it has recently been seen that it is difficult for the cryptocurrency to continue its upward movement. The bullish momentum is weakening. Thus, despite the fact that many experts assure about the increasing interest of institutional investors, bitcoin is not yet positioned to grow to $70,000 per coin. Perhaps the reasons lie in the negative fundamental background. In recent weeks, there has been plenty of news that could cool the interest of traders and investors in bitcoin. Thus, there are two important supports for digital gold right now: the $52,200 level, where the Kijun-sen line runs, and the $43,000 - $44,000 area. In the coming days, the bitcoin exchange rate may again begin to strive for these supports, as it is not yet able to continue growing.





Paolo Greco
Analytical expert
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