The cryptocurrency market has been on its bull run for a better part of 2021, even when you consider the May crash. Though there have been several dips in the market, it is pretty much assured that the bull run is a good sign that is going to last. In fact, the bull run went past all expectations and grabbed several eyeballs when bitcoin moved past the $50,000 mark for the very first time. Here are the signs that it’s a good time for crypto investments.
As the employment dropped due to the pandemic, people started looking at other income sources. It was during this time that crypto came as a blessing to many people. However, do not let that give you the idea that the enthusiasm is going to fade away anytime soon.
Considering the recent reopening of the cities and towns after the lockdown, businesses have begun to open their doors. Consumer confidence is starting to improve, and the demand to purchase more goods is rising in tandem. Crypto enters the picture at this juncture, riding on better business and consumer confidence and the impending demand because of COVID lockdowns.
Recently, El Salvador became the first ever country in the world to declare bitcoin as its official and legal tender. In fact, its president even gave away $30 of free bitcoins to the citizens. Going by the reports, Panama might soon follow its footsteps. There are many such countries trying to create digital currencies of their own.
As a matter of fact, in several countries, crypto is now being considered a safe asset to move past market volatility and inflation. Many reputed companies are increasing their crypto investments, while other companies are planning to take crypto as an acceptable payment mode. Corporate confidence keeps turning the tide in favour of crypto users and investors.
Crypto has a few negative commentators, but in the long-term, countries (like El Salvador) and investors are aggressively promoting its wider acceptance. With an increasing number of companies and institutions planning to accept and adopt cryptocurrencies as a legal tender, when one company backs off, it may fasten the acceptance process by other companies.
Originally, China controlled 46 percent of the global Bitcoin production before mining was banned in the country. It gave a chance to other countries to set up their own production units to ensure faster, better, and greater crypto production.
As per Quantumai, the ‘golden cross’ is a situation where the short-term moving average price of an asset crosses the long-term moving average prices. This happened in September for bitcoin, and that isn’t all. Its hash ribbon had a cross between the 30-day and 60-day moving average. Historically, it indicates a major gain in the trading volume.
Hash ribbon of bitcoin is the measure of the computer power utilized in the bitcoin network at a certain period. Crypto prices tend to go up whenever something like this happens.