Cryptocurrency Analysis

[IFX_Selena]

Christine Lagarde and Andrew Bailey continue to criticize cryptocurrencies.



Recently, Andrew Bailey commented on bitcoin. The head of the Bank of England believes that no one should invest in "digital gold" unless you are ready to lose everything. According to the chairman of the BA, bitcoin can devalue at any time, which will lead to serious losses for any investor or trader. The same opinion is shared by the head of the ECB, Christine Lagarde, who yesterday said that cryptocurrencies are used for money laundering and financing illegal operations. However, such rhetoric from the heads of central banks is not new. Recall those representatives of the Fed, ECB, BA, and other central banks of the world have repeatedly criticized bitcoin and its "brothers." However, none of them introduced any bans on the use, production, or storage of "bitcoin" and other cryptocurrencies. Thus, we can conclude that central banks and governments may not be happy with cryptocurrencies, but they benefit even to them. Therefore, the chances that bitcoin will someday fall under the ban of the Fed or the ECB are currently tending to zero.

Meanwhile, the experts of Arcane Research said that the recently fashionable concept of "altcoin season" has already begun and is in full swing. They cite the same data as many others: the bitcoin dominance index has fallen below 50%; bitcoin itself, unlike ether, cannot continue to grow; the capitalization of many altcoins has been growing for four months. Experts also note that earlier altcoins, when they showed growth, largely depended on speculators, but now more and more investors are buying altcoins for the future, hoping that they will also grow in price, like bitcoin.

At the same time, billionaire investor Mark Cuban said that bitcoin is much better than ordinary gold, as it is easier to buy and easier to store and trade it. He also spoke positively about Ethereum, saying that this cryptocurrency is much better, faster, and cheaper than its digital counterparts. Cuban also criticized the banking system for its high dependence on people and buildings. In his opinion, cryptocurrencies are fully automated and instantaneous.



Ethereum yesterday updated its maximum value around the level of $ 4200. As you can see in the illustration, the ether quotes are much higher than the ascending channel, which indicates an extremely strong "bullish" mood of market participants. So far, there are no prerequisites for the beginning of the correction. The price failed to overcome the resistance level of $ 3,988, and the $ 4,000 mark is psychological. Therefore, a pullback downwards is more likely until the moment of overcoming this level.





Paolo Greco
Analytical expert
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