Last month's price correction and the rapid spread of new strains of coronavirus forced the global community to re discuss the problem a year ago. It can be recalled that the cryptomarket reached the bottom last March 2020 due to the beginning of the global pandemic: Bitcoin declined below $ 4,000 and Ethereum below $ 90. Some people noticed the same thing during the spring of 2020 and 2021. However, such comparisons are quite conditional, as there were many positive events during the year that turned the concept of the development of the cryptocurrency market.
The first and most important change is related to the creation and development of a new class of participants in the cryptocurrency market. If at the beginning of 2020, it was mainly retailers, then in the last quarter of 2020 and the beginning of 2021, major players entered the cryptocurrency market, which finally changed the structure of the digital industry development.
Initially, the changes affected the leading digital asset – Bitcoin, which began to set the mood for the entire market and the main altcoins. The main cryptocurrency created a foundation and a certain margin of safety for the entire market amid unstable economic indicators. That is why Bitcoin retained its position and saved the entire crypto market from big surge in value when the world's economies were having a hard time due to the start of vaccination in mid-February.
Moreover, the development of the research institute for individual digital assets and the whole entire market contributed to the growth. The development of software, unique algorithms and new ways of introducing digital money into everyday life have also caused investors to have increased interest in cryptocurrencies, which creates certain concepts in the society for the development of digital coins in the future.
This year, the new audience of the crypto asset market began to actively stand out in view of classic participants in operations with electronic money. For example, it became known that the number of Bitcoins on the world's cryptocurrency exchanges has fallen to a one-year low. This is due to a new strategy of large investors who buy digital coins and immediately withdraw them to cold wallets. It can be noted that all this will lead the market to an early shortage of supply, while demand will remain at a high level or even grow on the wave of positive news.
This is also discussed by the CEO of Binance Changpeng Zhao, who sees such a model of using cryptocurrencies for the first time and believes that this will cause the cryptocurrency quotes to further rise amid a shortage of digital assets on the main crypto exchanges around the world. All of the above factors can not only prevent the risk of a major market decline, but also become a decisive factor for the growth of major crypto assets.
The material has been provided by InstaForex Company - www.instaforex.com