The course of the first cryptocurrency for a short time overcame the mark of $ 57,000, and the market capitalization was again entrenched above the psychologically significant mark of $ 1 trillion
Bitcoin has formed a local bottom of February 28 in the area of $ 43,000 and has since been steadily restored. The last four days cryptocurrency finishes with confident growth, while the market capitalization of the main digital coin exceeded $ 1 trillion for the first time since the end of February when the new price record was recorded $ 58,350.
Over the past day, Bitcoin rose by almost 5% and at the moment the region tested above $ 57,000. At the time of writing, the BTC article is traded at $ 56,700.
Inflation protection not
Supporters of Bitcoin claim that the digital asset is a means of savings that can be used as hedging against inflation and the devaluation of the dollar, which will be a consequence of Fed Policy. The US Central Bank has flooded the financial system to dollars to support the economy during the coronacrisis period.However, Bitcoin is growing, even though the consumer price index in the United States entered the following forecasts. This means that the threat of inflation is still small, and the current rally is due to other factors. In particular, the analyst BEINCRYPTO Vadrin Tahiri is confident that Bitcoin is ready for the storming of new historical maxima after a breakthrough of important resistance.
In addition, interest from institutional investors and a stable flow of news on how companies are planning to diversify their reserves in bitcoins feed the bullish attitude. CEO Ark Invest Katie Wood, for example, recently noted that Bitcoin can soon become a standard component of the investment portfolio.
Bubble that burst
Incompleteners argue that cryptocurrency is a bubble, which is about to burst, because Bitcoin, unlike companies and physical assets, is worth nothing but the faith of investors in cryptocurrency.
In early January, the head of the State Duma Committee on the Financial Market of Anatoly Aksakov, who called Bitkoin the bubble, was joined to Criticia Bitcoin. At the same time, the digital ruble official considers promising innovation.
The market will grow after Bitcoin
The main cryptocurrencies also strengthen their positions. Ether - the second largest digital coin - per day has risen by 1.5%. BINANCE COIN - The coin is now ranked third in the capitalization rating - rose by 4.5%.
Growth reflects optimism towards risky assets. In particular, the NASDAQ 100 index also recovered after the fall.
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