The cryptocurrency market has finally recovered from the price correction and is ready to reach new peaks. The main driving force of digital assets is still Bitcoin. The value of this leading digital asset continues to grow and has already got near to a historical record.
An additional factor can be called the creation of a separate group of market participants who create a shortage of Bitcoin through certain operations on crypto-exchanges, which, in turn, leads to increased demand. Recently, it became known that the world's crypto-exchanges have the smallest bitcoin supply for the past two years. This is due to the fact that investors buy coins and immediately withdraw them to cold wallets, leaving the exchanges with nothing. This is what contributes to the Bitcoin's shortage, which will especially affect mining on the wave of continuous rising interest in the crypto market.
At the same time, an excessive increase in demand for the main cryptocurrency can provoke a market collapse through a technical price correction. Such a situation can affect a large investor, who is likely to start huge infusions into the market due to optimism. In turn, this can cause Bitcoin to make periodic growth, which will depend solely on the current demand for the asset, economic indicators and investor sentiment. However, this scenario is unlikely given its current position.
In conclusion, we can say that Bitcoin has created a strong foundation based on investment, information, and research interests. These key factors will support Bitcoin's growth, leading it to set new records. Thus, it is believed that the interest in the main digital coin will further rise in spring 2021, unless there will be an inevitable occurrence. Anyhow, crypto exchanges should prepare for the influx of users.
The material has been provided by InstaForex Company - www.instaforex.com