09.02.202114:37 Forex Analysis & Reviews: Hype of the cryptocurrency market

The well-known Tesla company acquired $1.5 billion worth of Bitcoins on its balance. The amount is not so large, but the very fact that one of the largest companies in the world, and one of the richest people, according to Forbes, entered the crypto industry is worth a lot.

The crypto market is a young substance that few people believed in, and just a few years ago it was predicted to collapse every day. Now, not only institutional investors have entered the market, but also funds, banks that manage family capital, and mega-corporations.

So, the opinion about the crypto market has changed, it is now regarded as an opportunity for investment and savings. Imagine that before, the crypto market was discussed only by bloggers and the millennial generation, but with the arrival of large players, stock market veterans will simply have to study the issue of cryptocurrencies.

The news from the past, the well-known "Oracle of Omaha" Warren Buffett, who for a long time was a follower of conservative investment in such areas as Railways Industry, Construction, Consumer goods, eventually changed his mind and began to invest in Apple shares, although for a long time he was negatively expressed in the relations of this type of companies.

Opinion may change, with Warren Buffett as an example. The crypto industry is a young activity, and it still has a long way to go, and with large players on board, we can see not just an idea that Satoshi Nakamoto presented to us, but a real foundation for future investments.

Let's go back to the purchase of Bitcoins by Tesla, and, following from the information, the purchase took place in the price range from $35,000 to $40,000, that is, almost recently. It turns out that the market received a fundamental foundation where a major player stepped on board. Thus, the fear of a market collapse is currently decreasing at times, and if there is a correction, it will be just up to the levels of buying Bitcoins by Elon Musk.

Now a new boom called "Corporate Interest" awaits us, where large companies, following the giant Tesla, will look closely at a new type of assets, which will most likely lead to a new flow of investments.

"I wouldn't be surprised if within a year there is an announcement for the purchase of Bitcoin from some tech giants Facebook or Google," said Amber Ghaddar, founder of fintech firm AllianceBlock.

With the above information in hand, we will turn on our imagination to the maximum and, for a start, remember how Elon Musk pumped his own shares, which grew in price much faster than Bitcoin.

Elon Musk becomes the leading influencer of the crypto market, which stimulates the cryptocurrency to grow further.

What is happening in the market at the moment?

The first cryptocurrency did not easily recover from the January correction, it multiplied, updating its historical maximum. My forecast of $100,000 for 1BTC, which was presented in the previous review, no longer seems to be an analyst's fantasy but is regarded as a realistic medium-term perspective. With Bitcoin's current growth rate, the $100,000 prospect could be reclassified as a short-term trading idea.

It is worth considering that in my expectations I start not only from Elon Musk's hype but also operate with a foundation of institutional investors, a change in opinion about the crypto industry, PayPal, and the introduction of crypto into society, as well as other factors of influence on the market by speculators.

For newcomers, I advise you to study my articles on cryptocurrency since the spring of 2020, where the information was consistently analyzed, which formed the basis for the growth of Bitcoin.

Our return on investment in Bitcoin is more than 400%, congratulations to everyone on the Success!

General background of the crypto market

Analyzing the total market capitalization of the crypto industry, we see a figure of $1.372 trillion, which makes the crypto market more visible than before.

The current growth is largely due to Bitcoin, but given the growing Altcoin market, we can easily see a figure of $2 trillion and even $3 trillion in total market capitalization.

Market Cap: $1,372 756 527 456

BTC Dominance: 63.0%

The index of emotions (aka fear and greed) of the crypto market is at the level of 95 points, this is the FOMO * (Lost Profit Syndrome*) region, where an insane amount of capital and new participants are poured into the market. Such a high interest in the market and positive emotions from its participants can lead to further growth of the entire crypto industry.

Indicator analysis

Analyzing different sectors of timeframes (TF), it can be seen that the indicators of technical instruments unanimously signal a buy, due to the rapid growth of Bitcoin