International control over bitcoin turnover has increased
On April 14, there was a turning point in the market, which may become a new driver for an unprecedented rise in the bitcoin rate. The coin has already made another breakthrough. The cryptocurrency rate approached the $65 thousand mark. However, many bitcoin owners are not in a happy mood, but rather anxious. There was a reason for concern: analysts recorded a tightening of control over transactions. What marks can a cryptocurrency break, why is the excitement on the exchanges growing, and what should investors consider when buying and selling digital currency?
Why the bitcoin rate set a new record
The rise in the bitcoin rate in recent weeks occurred against the backdrop of a weakening dollar and a decrease in the yield of US government bonds. Over the past two days, digital gold has been hitting all-time highs ahead of the IPO of cryptocurrency exchange Coinbase. This explanation is given by the director of Binance in Russia and the CIS Gleb Kostarev.
On April 14, Coinbase debuted on the NASDAQ exchange. Thus, it became the first public crypto exchange.
“This is truly a turning point for the entire industry. We are witnessing the adoption of cryptocurrency by the traditional financial market. Analysts are quite positively disposed and predict a further rise in the cost of bitcoin to $ 70 thousand in the coming months, – said Gleb Kostarev.
Another reason for the rise in the bitcoin rate is associated with the new program to stimulate the economy in the United States. Vladislav Bulochnikov, the founder of the cryptocurrency p2p platform Chatex, speaks about this.
According to the analyst, it is likely that after the excitement around Bitcoin, a period of stabilization and correction will come. The coin can go down sharply. He doubts bitcoin has the potential for further growth right now. This can only happen if new factors emerge to stimulate the market.
– Bitcoin has accustomed the market to its records in recent months. Therefore, the dizzying new historical maximum closer to 65 thousand, reached on April 14, is no longer perceived as a sensation. Although an increase of 8% in two days is quite worthy of such a definition. From a technical point of view, the continuation of the upward trend can bring quotes to the next nearest target level – 65-66 thousand dollars. He’s not far away. Nevertheless, from the point of view of the growth rate of quotations, Bitcoin looks overvalued. The positive has already been largely taken into account in the current price. It is likely that the asset will consolidate at the reached levels and a possible correction to strong technical support zones in the region of 51-56 thousand. In any case, one should bear in mind the extremely high volatility of cryptocurrencies and the possibility of very sharp movements in one direction or another, warns Mark Goikhman, chief analyst at TeleTrade …
How to secure your cryptocurrency savings
The investor’s task is not to predict the price of assets, but to control their risks. Including through wide diversification. This is the opinion of Ilya Korovin, chairman of the National Union of Private Traders and Investors in Financial Markets.
To protect your savings, he advises not to invest in crypto more than 15-20% of your assets, despite all the temptations to make quick and big money. Then there is a chance to make money on the growth of the rate, and reduce the risk in case of a possible next correction of cryptocurrencies, which can be very significant. This is usually the case in this segment.
All analysts traditionally remind: cryptocurrency, as it was, and remains a high-risk investment. If you buy it, then only for such amounts that you are not afraid to lose. It is simply impossible to make an accurate forecast of the exchange rate based on market factors.
– A reversal pattern has been forming in the Bitcoin exchange rate since mid-February 2021. It was completed in early April. Now comes the final stage of convincing investors of future growth prospects. When it becomes clear that everyone who wanted and could buy bitcoin has already done this, a deep correction will begin in the region of 35-40 thousand. As a rule, the final stage does not last long, no more than a month. It is usually supported by high-profile stories. Now this is a listing of shares of the largest US cryptoexchange, Coinbase, on Nasdaq. So until about the end of April, bitcoin can still hold above 60 thousand dollars, making local surges to 65-67 thousand, but after that it will most likely begin to fall, – says Alexander Rozman, senior analyst at Forex Optimum.
He warns of another danger. If a real crisis suddenly occurs (given the historical highs in crypto and on stock exchanges, this is at least worth thinking about), then the pressure that has arisen on the liquidity of crypto exchanges, as well as on the technical infrastructure due to possible massive panic sales, can bring down the entire system. In such a situation, Alexander Rozman believes, the market will simply disappear for some time. It will be simply impossible to sell your cryptocurrency during this period.
How control over the turnover of cryptocurrency and transactions with bitcoin is tightening
If we talk about innovations that relate to the turnover of cryptocurrencies, then it is worth remembering the law on digital financial assets. It entered into force on January 1 this year. As follows from the document, Russians who declare their operations with bitcoin now fall under legal protection in the domestic legal field.
– This is definitely positive news. On the other hand, failure to declare these operations now implies increased risks for violators. The fact is that now the cooperation of Russian fiscal authorities with foreign crypto operators is expanding. In other words, digital currency is moving more and more from the gray to the white zone. This must be taken into account by every private investor, – Ilya Korovin explained.
Vladislav Bulochnikov believes that the main risk for cryptocurrency owners is that the state can strengthen the regulation of the digital asset market. Also, against the background of an increase in the escalation of international conflicts, a sharp drop in the exchange rate or a ban on the circulation of coins may occur. The analyst believes that selling bitcoin now is a good decision. At least because no one knows when the collapse will occur and where the course will go in this case. Of course, you can wait in the hope that the rate will rise to 100 thousand, but not the fact that you will be able to make a profit, since the price can go down sharply.
– Now is the most optimal moment to sell foreign currency, as this will make it possible to fix profits at a high level. And the risks are mainly associated with the fact that such a rapid popularization of cryptocurrencies in the world can force regulators to pass laws restricting the circulation of digital assets, since for ordinary fiat currencies digital ones become a serious competitor that draws off investor funds. Now no one will say exactly when the market will collapse, although they have been expecting it for a long time. And no one will name the factors that can lead to this. This will be a sharp decline based on some data, decisions of states. It is extremely difficult to predict this. In order not to lose funds in cryptocurrency, it is worth purchasing it only on proven, well-known platforms, – says Marat Mynbayev, trader, investor, founder of Amir Capital Group.
Alexander Rozman also draws attention to the increasing state control over operations with cryptocurrency. More and more countries are announcing the launch dates for their government digital money. According to the analyst, they do not need competition from private cryptocurrencies.
– Therefore, it is highly likely that along with the appearance of the state “crypt”, a complete ban on private cryptocurrencies will be introduced. This has already happened this year in India. In Russia, as we can see, activities in this direction are also intensifying. The cryptocurrency platform should be launched at the end of 2021, which means that the time has come to tighten the terms of ownership and circulation of private digital currencies. What, in fact, is happening now, – says Alexander Rozman.
For Russians who own cryptocurrencies, it is important to consider that it is possible to buy, sell and accumulate bitcoins, but they cannot be used to pay for goods and services. This point is clarified by Mark Goykhman. According to him, it is advisable to use specialized cryptocurrency exchanges to sell or buy bitcoin. It is necessary to work with large, well-known, registered sites to reduce the risks of transactions.
As a rule, there is required to provide information for personal identification. The exchange commission can be 2–5% of the transaction amount. You should also be prepared for the fact that the bank may suspend the transfer when withdrawing funds to check their legality.
