The crypto market has moved away from the old year on a downtrend, with bitcoin trading in the $ 46,000 range and total market capitalization falling towards $ 2.35 trillion. While many are unable to overcome the pessimistic sentiment, economist and trader Alex Kruger expects “the crypto market to spike in early January and a boost from investment flows”.
month GI feel warm
Alex Kruger recently analyzed Bitcoin returns over the past 4 years at the beginning of January. Interestingly, during this period everyone posted positive returns on the chart.
As for the price, it should be noted that BTC started the year on January 1, 2021 near $ 29,000. After pegging an ATH at $ 69,000 in the final quarter of the year, the price has steadily declined since then, closing the year at $ 46,300. At the time of writing, the price is up slightly at $ 46,850.
BTC price 4-hour chart | The source: Trade view
In contrast, Carol Alexander, a professor of finance at the University of Sussex, predicts that Bitcoin will correct sharply in the next year. Speaking to CNBC, she claimed BTC could plunge to $ 10,000 and wipe out all profits due to its lack of “fundamental value.”
“If I were an investor now, I would consider getting out of Bitcoin early as the price is likely to crash next year.”
In terms of cash flow, Coinshares notice largest weekly runoff with a record $ 142 million in latest report.
“Digital asset investment products recorded outflows totaling $ 142 million, the first in 17 weeks with the largest weekly inflows and outflows in history. The largest outflow to date occurred in early June 2021 ($ 97 million in weekly timeframe).
The third richest man in Mexico, Ricardo Salinas Pliego, recently phone call his Twitter followers are investing in Bitcoin in the new year. According to the video message translated from Spanish, he noted:
“Stay away from fiat money … it’s fake money made out of paper and lies. Central banks are printing more money than ever before. Invest in Bitcoin. “
Rain before the organization
Noelle Acheson, Head of Market Research at the Genesis Trading crypto exchange, suspect Institutions will be excited about Bitcoin and crypto companies in the coming year.
“Just the rate at which the organization has grown over the past 12 months has been astonishing. We see strong signs of acceleration in the coming year, both through direct investments in tokens and through the infrastructure companies of the crypto market themselves. ”
She further estimates that out of 65 in the market, 40 crypto unicorns will be born in 2021. However, it seems that Bitcoin is no longer the only option for the large investor today.
“We’re also seeing greater institutional interest in a more diversified portfolio … the sector really makes me believe it has decoupled from the market leader.”
In addition, Acheson commented that many investors are now giving up the two most important cryptocurrencies and turning to riskier, but also more profitable tokens that represent technological advances and cultural claims.
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