Bitcoin is awaiting a sustained bullish trend that was already evident at the $6,000–$7,000 level. This was stated to ForkLog in a commentary by Evgeny Kogan, professor at the Higher School of Economics (HSE).
According to him, price movement of the first cryptocurrency should be tracked only by trends:
“I would be the greatest fool if I gave price forecasts. I am extremely negative about statements that “Bitcoin will be at $25,000 or at $50,000.” This is not something anyone can know. The only thing one can foresee is trends. When Bitcoin was still $6,000–$7,000, I wrote that, obviously, the trend was “up” and likely for quite a while.”
Among the reasons contributing to Bitcoin’s growth, Kogan cited central banks’ money printing and a large inflow of liquidity into traditional financial markets.
“When there is a lot of liquidity, some of it goes into the cryptocurrency market. Regulation of traditional exchanges is also rising – today it is catastrophically difficult to carry out any payment. Naturally, in this context cryptocurrency is a solution to problems for some people; there is demand for it.”
Professor at the HSE noted that traditional models for forecasting future profits do not work for investments in cryptocurrency:
“Unlike stocks, where there is a clear cash flow and a specific value of companies, or bonds, where you can assess the issuer’s solvency and yield on coupons, investing in cryptocurrency is precise investments that do not yield positive digital flow. However, cryptocurrencies have consumer value.”
The expert called p2p transfers an important consumer property of cryptocurrencies:
“With a single click, money ends up with the recipient and no one asks on what grounds the transaction was carried out. Many people use cryptocurrency as a means of payment.”
At this stage, regulators are the main enemies of digital assets, the professor believes.
“Transactions in cryptocurrency undermine the principles of compliance that regulators fight for, so there is a clash of opposites,” added Evgeny Kogan.
Earlier experts told ForkLog about the reasons for the rapid growth of the first cryptocurrency.
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