Bitcoin is back on the hype: How will the increased attention on BTC affect the cryptocurrency market?

Bitcoin experiences certain problems and droops in price after setting a new historical record of capitalization. At the same time, the coin retains all the prerequisites for further growth and confidently holds at the level of $55 thousand. The main reason that the position of the main cryptocurrency has been seriously affected in the last few days is the sudden information that India is preparing to completely ban the use of digital assets.

It is because of the possibility of a complete ban on cryptocurrencies in India that the BTC quotes sank by more than 12%. But if you look at this situation more broadly, it is clearly visible that this news was a prerequisite for filling the information space with theses about bitcoin and the cryptocurrency market. Ray Dalio, the founder of the world's largest hedge fund, has already spoken about this. According to the entrepreneur, in order not to lose profit from tax deductions in the future, the US authorities will want to limit the withdrawal of capital through cryptocurrencies.

Suddenly, the wave of discussion about the future of bitcoin was picked up by Robert Kiyosaki, the author of the bestseller "Rich Dad, Poor Dad." The entrepreneur insisted on buying bitcoin, gold, and silver in order to save money during the implementation of new measures to support the US economy in the amount of $1.9 trillion.

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Representative of the Republican Party of the United States Cynthia Lummis agreed with the position of Robert Kiyosaki. Recall that it was this politician who spoke positively about bitcoin last fall and promised to bring it to the national level. Max Kaiser, the founder of Heisenberg Capital, added a little more positive opinion, who predicted the growth of bitcoin to $200 thousand this year. According to the entrepreneur, the value of the main cryptocurrency may reach $220 thousand this year as a result of the inflationary processes of fiat currencies.

Despite the fact that the statements and forecasts of experts vary, there is no denying that the news background has gradually normalized and become positive for bitcoin and the cryptocurrency market. The next wave of hype will be an additional incentive to growth and a guarantee of security against sharp subsidence in the value of the crypto asset. In view of deteriorating economic indicators due to the possible introduction of lockdown, bitcoin not only has the potential for rapid growth, but also a springboard that will allow the coin to stay in safe positions.

However, there are several very important factors that can slow down the development of the cryptocurrency market. First of all, these factors include the features of bitcoin: its use as a protection against inflation, harm to the environment when created, as well as the lack of clear legislative regulation. Attention to these details can significantly slow down the growth of main crypto asset's quotes and the development of the entire market, but an increase in the price of BTC to $100 thousand before the end of the year is still a very plausible scenario.

The material has been provided by InstaForex Company - www.instaforex.com

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