Forex and Crypto News

2 reasons why Bitcoin price will increase

15:40 03 February /2021

In the last 24 hours, cryptocurrency exchanges have recorded a significant increase in stablecoin inflows. Analysts suggest that these stablecoins will be used to further purchase cryptocurrencies.

So, according to the CryptoQuant platform, after about $600 million began to be added to crypto exchanges on a daily basis, the exchange's stablecoin reserves reached a record level of 5.47 billion. The growth in stablecoin inflows coincided with the beginning of the rise in the Bitcoin rate, which grew by only 3%, breaking through the resistance level of $36000. At the time of publication, Bitcoin is trading at $36585.

One of the main reasons for the growth in stablecoin reserves on exchanges was the positive sentiment of investors. In addition, with the help of stablecoins, you can quickly acquire cryptocurrencies. Therefore, many analysts view the higher influx of stablecoins as a sign of an imminent bullish momentum in the cryptocurrency market, including the Bitcoin market.

Market analysts also point to two reasons why sentiment on the future of Bitcoin has improved. First, it became known that VISA is going to help banks create trading services using Bitcoins. This will increase the spread of Bitcoin among private investors.

Secondly, Scott Minerd, a chief investment officer of Guggenheim Partners, gave a very optimistic forecast for the future price of Bitcoin. He predicted the rise in the price of Bitcoin to $600000.

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On the BTC/USD chart, we see a recovery that began on January 27th. The BTC/USD pair has already overcome the $36000 resistance level. Analysts suggest that the price has completed a consolidation and is ready for further growth. Now the main goal of Bitcoin is to overcome the level of 40000.

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