For example, yesterday bitcoin broke the key mark of $45 thousand for the first time since January.
Why did everyone think that in 2022 the growth of the crypt is very unlikely?
The cryptocurrency was opposed by the fact that all regulators are stopping the attraction of unprecedented generosity in the form of low rates and a “printing press”. At such moments, money usually flows out of risky assets. And the same bitcoin undoubtedly belongs to those.
In particular, it affects the Fed, which:
▪️ Has already raised the rate once and plans to continue.
▪️ Stopped the “printing press” (QE)
▪️ Announced the start of the sale of assets from the balance sheet (QT).
Despite the closure of the shop with cheap liquidity for the month, Bitcoin grew by 9% (m / m), and Ethereum by 14%. Let’s figure out what happened.
And very important and interesting things happened:
- The direct need has grown. Many people transfer their savings into cryptocurrencies in order to pay off foreign counterparties and withdraw money abroad.
- Geopolitical tensions have increased. And cryptocurrencies offer a system of saving funds that does not belong to any state.
- Trust in the payment systems we are used to is falling. Disabling PayPal (NASDAQ:PYPL), Visa (NYSE:V) and Mastercard (NYSE:MA) in Russia shows that everything is much more fragile than we think. And there is no longer this unconditional trust in online wallets and even ordinary money.
- Fears are growing that the dollar is more fragile than we thought. Now many countries are likely to switch to settlements in yuan or other currencies.
- The number of hacker attacks and all kinds of threats to hack bank wallets is growing. Decentralized storage of information about your balance and payments now looks especially attractive to many.
Until recently, most people could not even imagine that storing currency and gold abroad could so easily lead to all your savings being frozen. People calmly kept money in foreign banks and did not think much about the diversification of the payment systems used.
The reality around us is changing very, very quickly. Life opens our eyes to those things that seemed obviously different before. So cryptocurrencies are growing in spite of fundamental factors. And it is possible that they will continue to grow, because the world is not so rational, and it is impossible to predict many events analytically.