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Binance analysts believe that the main digital coin will no longer return to its 2021 lows.
A strong correction in the price of bitcoin has been passed, and the so-called "bottom" is behind, the researchers of the Binance Research division are sure of this. They managed to prove a high degree of correlation between digital money relative to each other due to the “herd effect” that manifests itself in the crypto market.
According to analysts, when the correlation between the prices of altcoins and bitcoin against the US dollar reaches a certain positive price mark, then there is a high probability that the trend of the first cryptocurrency may start a reversal or at least stop moving in a previously set direction. However, in the report, experts explain that this is only an assumption and it is too early to establish clear relationships.
“Given the short history of the cryptocurrency market, it would be premature to say that there is a causal relationship between correlation peaks and market reversals, or that this is actually a herd effect during the market reversals themselves,” Binance said.
Since the beginning of 2019, the first cryptocurrency has risen in price by more than 40%, with the main growth in April. Other altcoins also demonstrate positive results of the rise in rates.
According to Binance Research, the internal correlation of cryptocurrency prices increased markedly in the bear market in 2018. Then it became especially noticeable that in the industry a large number of players who do not quite adequately (overly positively or negatively) assess the state of assets, and this leads to an increase in the volume of transactions, an increase in volatility, the formation of bubbles and, at times, an unreasonably deep fall.
Exchange analysts believe that the history of last year may repeat itself. In 2021, the pessimistic sentiment in the market reached its maximum value, a similar situation may occur now. However, in this case, the reversal should go up.
Today, most of the most significant cryptocurrencies in terms of capitalization are in the green zone. Bitcoin has risen in price by 2.41% per day, to $ 5184. Ethereum has grown by 3.20% and is now valued at $ 168. XRP climbed 1.17% to $ 0.32.
Last week, the co-founder and head of BitMEX exchange Arthur Hayes said that in the coming years the price of Bitcoin will reach $ 50,000. According to the specialist, control by the authorities will grow in the next five years. Cryptocurrency will be the last asset to help maintain financial privacy, so the demand for it will increase.
A strong correction in the price of bitcoin has been passed, and the so-called "bottom" is behind, the researchers of the Binance Research division are sure of this. They managed to prove a high degree of correlation between digital money relative to each other due to the “herd effect” that manifests itself in the crypto market.
According to analysts, when the correlation between the prices of altcoins and bitcoin against the US dollar reaches a certain positive price mark, then there is a high probability that the trend of the first cryptocurrency may start a reversal or at least stop moving in a previously set direction. However, in the report, experts explain that this is only an assumption and it is too early to establish clear relationships.
“Given the short history of the cryptocurrency market, it would be premature to say that there is a causal relationship between correlation peaks and market reversals, or that this is actually a herd effect during the market reversals themselves,” Binance said.
Since the beginning of 2019, the first cryptocurrency has risen in price by more than 40%, with the main growth in April. Other altcoins also demonstrate positive results of the rise in rates.
According to Binance Research, the internal correlation of cryptocurrency prices increased markedly in the bear market in 2018. Then it became especially noticeable that in the industry a large number of players who do not quite adequately (overly positively or negatively) assess the state of assets, and this leads to an increase in the volume of transactions, an increase in volatility, the formation of bubbles and, at times, an unreasonably deep fall.
Exchange analysts believe that the history of last year may repeat itself. In 2021, the pessimistic sentiment in the market reached its maximum value, a similar situation may occur now. However, in this case, the reversal should go up.
Today, most of the most significant cryptocurrencies in terms of capitalization are in the green zone. Bitcoin has risen in price by 2.41% per day, to $ 5184. Ethereum has grown by 3.20% and is now valued at $ 168. XRP climbed 1.17% to $ 0.32.
Last week, the co-founder and head of BitMEX exchange Arthur Hayes said that in the coming years the price of Bitcoin will reach $ 50,000. According to the specialist, control by the authorities will grow in the next five years. Cryptocurrency will be the last asset to help maintain financial privacy, so the demand for it will increase.
