Bitcoin Price might be at it’s highs for December 2021

• Bitcoin Price for 2021? Less money will start flowing into the American stock market, which should provoke a rally in prices. First, to new highs, and then prices will go to a correction.
• Less money will start flowing into the American stock market, which should provoke a rally in prices. First, to new highs, and then prices will go to a correction.
• In anticipation of such dynamics, crypto traders will prefer temporary profit-taking on open positions, make money on the movements of the US stock market, and then return to the crypto market.

Less money will start flowing into the American stock market, which should provoke a rally in prices. First, to new highs, and then prices will go to a correction

Last week’s news failed to bring down the crypto market, but set the trend for failure. Note that there were no significant changes in the crypto market for the period from 13 to 19 December.

On average, all cryptocurrencies traded within their ranges, but as of the end of this week, the result is:

bitcoin (Bitcoin) fell in price by 4%;
Cardano – by 6.6%;
Ethereum – by 8%;
Polkadot – by 10%.
The main trigger for the market is the decision made by the US Federal Reserve to change monetary policy: the regulator announced the acceleration of curtailing the rate of asset purchases from the market.

Also Read : Litecoin vs Ethereum 2021

“In January, the volume of monthly buybacks will decrease to $ 60 billion from $ 90 billion in December. At the same time, estimates of GDP growth were downgraded and estimates of inflation growth were increased. Because of this event, less money will start flowing into the US stock market, which should provoke a rally in prices. First, to new highs, and then prices will go to a correction, ” said Anzhey Kovalchuk, chief cryptocurrency strategist at TomiEx, in an interview with UBR.ua.

Bitcoin Trading SideWays

In anticipation of such dynamics, crypto traders will prefer temporary profit-taking on open positions, make money on the movements of the US stock market, and then return to the crypto market.

Accordingly, in the week from December 20 to December 26, an increase in demand for cryptocurrencies and an increase in the value of bitcoin are expected as a temporary event. After that, the price may drop to the lows of the month. In addition, the media forecasts that the market will definitely not pass the support of $ 40,000 look negative.

“From our point of view, bitcoin will be trading in the range of $ 43,000-51,000. Records for renewing the minimum should be expected during the thin market period – this is the last week of December and the first week of January,” Kovalchuk predicted to us.

Information regarding market regulation will be a minor factor. Already this week, the IMF received comments that states should adhere to the policy of regulating cryptocurrencies, since if they are banned, the authorities will completely lose control over the digital asset market.

“This will not be the reason for the growth of cryptocurrencies, but forms a long-term understanding that cryptocurrencies will be tolerated. And we can expect new investors to increase their cryptocurrency purchases in the coming week , ”says TomiEx Chief Cryptocurrency Strategist.

The risks of devaluation of national currencies, the hryvnia in particular, create favorable conditions for more and more investors, of various incomes, to go to the crypto market. Geopolitics, among other things, only maintains interest in the crypto market for years to come.

And the relations between Ukraine and Russia for 2022 are considered by rating agencies as a risk for the world economy. In addition, the population of different countries already likes quick money transfers without taking into account bank holidays and other conventions.