The price quotes for the main cryptocurrency went up at the beginning of 2021, but fell below the level of 20 thousand dollars by the end of January. After a short break, analysts predict another "boom" in bitcoin prices.
Furthermore, the experts have a serious argument that points to the rapid growth of the cryptocurrency by this time. The specialists of the company Glassnode are sure that in February the price of bitcoin will increase due to the increasing purchasing power of stable coins. Thus, a special algorithm was developed to determine this dynamics.
The research and operation of the algorithm is based on the stable coin supply coefficient. After conducting a simple analysis of the market value of bitcoins and all stable coins, experts came to the conclusion that this coefficient is low. This means that one stable coin can buy more bitcoins, which will definitely increase the demand for the asset.
A similar situation with the coefficient occurs due to the total turnover of other cryptocurrencies, as well as the price of bitcoin. Based on this, it is fair to note that the dynamics of increasing demand will concern not only the first cryptocurrency, but also other digital money. This will mainly cause an increase in the price of electronic assets.
In the dry balance, we have a low ratio showing the increasing ability to invest in bitcoin and other digital assets. It is worth noting that the price of bitcoin is already almost $ 35 thousand, after a significant decline in late January when the cryptocurrency was quoted at $ 25 thousand.
The material has been provided by InstaForex Company - www.instaforex.com