Analysts: Cryptocurrencies are growing thanks to Chinese money
Over the past day, the total capitalisation of digital currencies has grown by more than $8.3 billion and the main growth was shown by Bitcoin and Ethereum. The growth may be caused by Binance’s p2p platform launch, where bitcoin and ether will be traded for RMB, FxPro analysts told LetKnow.News.
According to the experts, the prospect of pressure from payment methods through Alipay and WeChat also indicates an increase in the money flow from China.
“Everyone expected an increase in institutional money, but the Chinese retail mass of investors could have a more significant impact on the market,” they emphasise.
It is noteworthy that the growth occurs at the moment when it became known about SEC’s rejection of the application for the launch of the Bitcoin ETF from Bitwise.
“Apparently, market participants are so tired of the failed ETF story that the news around these events does not cause any excitement. By default, the majority understands that the regulator considers the market too volatile and will not give a green light, experts believe.
At the same time, The TIE analysts tracked
altcoins’ references in the media and came to a disappointing conclusion: interest in alternative cryptocurrencies fell dramatically.
“This is a drawdown of up to 90%. It applies to all possible sources: from leading mainstream publications to Twitter accounts. The theory that the circle of digital currencies will narrow to a few largest blockchains, around which the main dynamics will unfold, is gaining momentum, ” conclude at FxPro.
According to them, there are already visible signs of a new market structure emergence, limited in number of participants. The main focus is on bitcoin, ether and stable coin USDT.
“Bitcoin is the first and reference
cryptocurrency, ether is the first altcoin, and USDT is used as a “safe haven” in times of storms, and that cryptocurrency also performs XRP functions in the context of money transfers. It is likely that digital coins will go along the path of the classic market model, when there are 2-3 main participants that are shared by 80% of consumers, while the remaining 20% are distributed among the other participants, ”experts say.
Large companies are also on the path to issuing their digital currencies. If Zuckerberg and Libra are being constantly criticised, Telegram has not yet been touched. The TON team has already promised to release the first batches of
“The project team still kept its promises and starts on time, which can be considered a great start. Without a doubt, regulators will begin to peer closely into TON’s development, since the user base of the project, although smaller than Facebook, but at the same time demonstrates a huge growth rate. According to Combot, Telegram registers 300,000 new users per day,” say the analysts.
At the same time, the growth impulse of bitcoin brought RSI out of the oversold zone.
“That index rose above 30 on the daily charts. The last time the index was restored in January of this year and preceded the stop of the sale of BTCUSD. A large-scale rally for this instrument began only two months later. However, it was a recovery from a very devastating drop. In previous episodes, the recovery of Bitcoin purchases was much faster. So, fixing RSI above 30 should be considered as a very positive technical signal,” the experts summed up.