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Global Economy

Decision stage in cryptocurrencies

As such, it is hoped that with a very simple example, the US Federal Reserve (Fed) will start printing money. But cryptocurrencies have not priced it in, and as you can see, the jamming process continues, and the question that people are most curious about is where will the direction be at the end of this jam? Up or down?

Perhaps this is the question that 80-90 percent of investors are generally curious about. Not just for cryptocurrencies, but for all assets that are traded and have value. Of course, I am of the opinion that no one can give a clear interpretation to such questions. In the past hours, JPMorgan’s strategists again made some statements about Bitcoin and I really liked it. He stated that they see Bitcoin’s market structure as more durable than currencies, equities, treasuries and gold, and that cryptocurrencies are “long-lived as an asset class.” In addition, as we will remember, Bitcoin fell below $ 4,000 for a while. Referring to this, he stated that it has recovered most of its value by the end of April by returning faster than most other assets from the $ 4,000 levels. As a matter of fact, this news can also be a positive signal for long-term plans.

On the technical side, the level of 10 thousand dollars is still not exceeded for Bitcoin / dollar. After climbing over this region, which we can describe as a kind of psychological barrier, we will need to focus on the perception of how much volume the transactions come in-how much volume they continue. For the long-term, keeping the same expectation, it would not be very healthy to comment above the 10 thousand 400-10 thousand 500 range. That’s why investors should be cautious.

In addition, although I do not like to use very different arguments when analyzing, I feel the need to use it from time to time in terms of the bond formed with the index-stocks outside in cryptos. Below I have shared the graph of GBTC (Grayscale Bitcoin Trust) with you. To briefly summarize what GBTC is, it is a US-listed stock used by investors who are hesitant to buy Bitcoin (with problems such as trust). Therefore, it may be beneficial to look at the status of GBTC while analyzing Bitcoin, especially in the long run.

As you can see, we are at the level of 10.88 dollars here. This means that GBTC investors pay $10,880.00 for 1 Bitcoin. At the beginning of the year, the purchases revived and the impression emerged that it would go to the levels in 2018. However, the increased purchases in the beginning of 2020 will not be enough, we can say that uncertainty is still preserved here.

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