On Tuesday, August 18, the global cryptocurrency market is showing positive dynamics. In the first half of the day, the cost of bitcoin grew by more than 3.5% and exceeded $ 12.2 thousand per coin. At the same time, at the close of trading on Monday, the indicator exceeded the $ 12.3 thousand mark.The last time such a high value could be observed in August 2019, according to Coinmarketcap data.
Other digital assets have shown similar dynamics. So, for example, Litecoin (Litecoin) in the course of trading grew in price by 1.6% (exceeded $ 65), and Monero (Monero) - by 1.8% (over $ 93). At the same time, the total capitalization of the electronic money market reached $ 378.5 billion.
In many ways, the observed rise in the price of cryptocurrencies, interviewed by RT experts, is associated with a sharp weakening of the dollar in the global market. In Tuesday trading, the corresponding DXY index fell to 92.5 points. The value was the lowest since May 2018.
“We see that in recent days the US national currency, as a global unit of measurement, began to depreciate significantly - the currency index fell by 12%. In the conditions of a falling dollar, literally all possible financial assets are rapidly gaining weight: metals, currencies and digital assets, including bitcoin, are becoming more expensive, ”said Mark Goykhman, chief analyst at TeleTrade, to RT.
According to him, the pressure on the dollar was exerted by investors' doubts about the pace of recovery of the US economy. According to the Bureau of Economic Analysis of the US Department of Commerce, in the second quarter of 2020, the country's GDP decreased by 32.9% compared to the same period in 2019. Thus, against the backdrop of the COVID-19 pandemic, the longest period of growth in the history of the American economy ended and a recession began, Goikhman added.
In addition, the actions of the US Federal Reserve had a negative impact on the dynamics of the American currency. This point of view in a conversation with RT was expressed by Mikhail Yakunin, Deputy Dean of the Faculty of Economics at Synergy University.
Recall that at the end of March, amid the outbreak of the coronavirus, the US Federal Reserve announced an unprecedented expansion of the quantitative easing program. The regulator began printing dollars and buying bonds in an unlimited volume on the stock market. Such a policy should lead to an increase in the money supply in the economy and help to increase the rate of GDP growth. At the same time, the regulatory measures lead to a weakening of the dollar, the expert emphasized.
“As a result, investors, trying to protect their assets from inflationary risks, go into numbers. Moreover, the capital flow is facilitated by the policy of some of the world's central banks, which promptly create an infrastructure for players to safely invest in cryptocurrency, ”the analyst said.
Experts also associate the rise in prices for digital coins with the consequences of the halving that occurred in the spring - a change in the rules for mining bitcoin. Traditionally, the event takes place every four years and is one of the defining dynamics of the global digital coin market.
- Reuters
- © Alessandro Bianchi
Bitcoin exists on the basis of blockchain technology - a single database that contains information about all transactions carried out. The emission of new cryptocoins occurs due to mining - solving complex mathematical problems and the appearance of a new block in the blockchain network. Each such block is an array of data, where information about all operations performed after the creation of the previous block appears. For solving the problem, miners receive a reward in the form of bitcoins.
Every year, the search for such blocks becomes more difficult and requires more and more computing power, and the reward for mining decreases, said Anatoly Knyazev, Executive Director of EXANTE, in a conversation with RT. So, in 2009, it was 50 bitcoins per block, in 2012 it dropped to 25 bitcoins, and in 2016 - to 12.5. In May 2020, the remuneration of miners was again halved and reached 6.25 bitcoins.
“After the halving, the supply of bitcoins decreased, which was a strong factor against the sharp decline in prices. At the same time, the demand for electronic coins is still growing at a significant pace. Now miners are not ready to sell bitcoins for less than $ 7-8 thousand per coin, ”the expert added.
As the leading analyst of Forex Optimum Ivan Kapustyansky told RT, after reaching record indicators in the short term, the bitcoin rate is able to briefly adjust to $ 12 thousand per coin. Meanwhile, in the coming months, the indicator may continue to grow and exceed the mark of 13.7 thousand, the specialist does not exclude.
According to the forecast of the marketing director of the cryptocurrency neobank Chatex Alexander Khvoinitskiy, by September of this year, bitcoin may rise in price to $ 15 thousand. According to him, the positive dynamics in the auctions will be associated with the risks of starting the second wave of coronavirus infection in the world, as well as the growing level of digitalization of the global economy ...
“The market is becoming more transparent, which means it is increasingly attracting the attention of large players, which contributes to its multiple growth. At the same time, against the background of continuing protective measures by the world authorities, the risks of a course correction still remain, "the interlocutor of RT concluded.