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How sustainable is the rise in cryptocurrencies

The recent one bullish movement in the cryptocurrency market it was the largest since November 2021. a key question that concerns those involved is whether the -now indisputable- upward trend is sustainable. Will it lead to new highs or is it just another speculative flare that will collapse ignominiously.

As for whether the upward push will continue, that's something no one knows for sure. Markets have… a bad habit of surprising us. However there is an answer to whether the rise in the price of Bitcoin, Ethereum and the rest of the company has a solid foundation? A resounding YES.

What are the upgraded quality characteristics that differentiate this period from other uptrends? Three factors have disappeared which to some extent, sometimes smaller and sometimes larger, increased the volatility, artificially pushing the up and down.

One is the leverage. Not that there are no futures, even options in crypto, but their impact is smaller. Most of the short-term traders are "burnt". Perhaps this is the purest bullish movement, as the fuel that powers it is cash. No leveraged capital. Money from ordinary individuals and from institutional investors, who have no reason to hide their involvement in the field.

The second reason is that influencers are absent in social media which in the previous bull run misled people either to buy without knowing the item or to put their money in tokens of dubious credibility and . Few sought to "educate" their listeners or readers. Instead what they were promoting was the "information" about such and such a token that if you buy it today, you will multiply your money very quickly.

Huge lie. A myth that as "old caravans" in the markets, we must point out that it is not true. No one, but no one, in any stock market, as far back as we look, has made money over time without working hard first. Without following the developments and above all without knowing in depth the subject he is dealing with.

The qualitative difference is that from January, if, as everything seems to be, the US Securities and Exchange Commission gives permission for Bitcoin ETFs, the recommendation for purchases will be made by certified investment advisers from respected institutions, such as BlackRock, Fidelity, etc. And these are not only addressed to wealthy individuals, but also to large institutional portfolios, such as insurance and pension funds.

The third difference compared to other bullish periods and especially the previous one, is that there are no longer entities of dubious reliability - as proved by the developments - such as FTX, Celsius and others. Entities accused of inflating prices for their own benefit, using excessive leverage. Some have accused her too Binance that it manipulates the market. A charge that has not been proven, nor has tangible evidence emerged to confirm it. However, even if they were right, it is highly unlikely that he would attempt to do so at this time, as he is under surveillance by the authorities.

The image of the market

As we have mentioned from time to time, his space has huge advantages over traditional markets. One of them is how we can detect network activity in real time. Indeed, on-chain data shows us that short-term Bitcoin holders have largely liquidated their positions. In particular, they have liquidated almost 4,5 billion dollars in the last four days.

Those who keep the coins in their wallets for less than 155 days are considered short-term. And this is because a clear qualitative difference has been observed. Those who hold their Bitcoins longer than 155 days have a relatively homogenous behavior, which differs from those who hold them below this period.

The short term they are more vulnerable to market news, their gains or losses. They are more emotionally affected than long-timers, who are generally content to see the big picture. Have deep faith in the prospects of Bitcoin and possibly some of the other cryptocurrencies.

For long term, often Bitcoin is a “one decision” asset. This means that it is bought with the intention of "never" being sold. Given Bitcoin's track record of performance, who can blame them for being wrong?

Dogecoin's birthday

Finally, let's close our today's intervention in a festive atmosphere. 10 years ago on December 6, 2013, two crypto… nerds, the Billy Markus and Jackson palmer, they started a meme coin, Dogecoin, for fun. A currency that evolved beyond any imagination, even of its originators. Within two weeks, its price tripled and recorded more daily transactions than even Bitcoin.

Within a month, had over one million unique visitors, and at one point it had more trading volume than all other cryptocurrencies combined! In the end it turned out that it really was more than a hype. He came to acquire multi-billion capitalization, creating a faculty. A special category in the crypto space, meme coins.

Today it is the tenth largest cryptocurrency, having a value of 15 billion dollars. And not only that. It has many fanatical supporters, among whom is O Elon Musk, while it can be used to tip on social media platforms, buy tickets and buy items in retail stores!

Dogecoin proves that even the wildest wishes can come true in the magical realm of crypto…


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The book "The Bitcoin Investment Handbook" can be obtained from bookstores or

* The article is not a solicitation to buy or sell the listed securities. Provided for informational purposes only.


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