The price of bitcoin exceeds $21,500

BTC quotes have exceeded $21,500, according to Coinmarketcap. Over the past 24 hours, the price of the coin has increased by more than 5%. According to analysts, the growth in the value of bitcoin is accompanied by an increase in trading volume.

The ETH exchange rate has increased by 3.5% over the past day. The crypto coin reached the $1,220 mark.

Earlier, the CEO of Galaxy Digital, Michael Novogratz, said that the fall of the crypto market may end soon, but it is better to prepare for the last “spurt” of the bears in the near future. The entrepreneur also noted that he does not believe in a decrease in the cost of BTC to $13,000. According to him, a significant part of margin positions has already been closed for today.

“We see a huge number of positions with leverage, with large leverage. Moreover, this is how centralized cryptocurrency companies trade, and not decentralized projects. For example, Celsius, Three Arrows, BlockFi — they have a huge amount of margin positions. And now we see them go bankrupt. Therefore, the market is deleveraging — I think 90% of margin positions are already closed. The problem is that growth requires the faith of the market and the influx of capital,” said Novogratz.

In addition, he believes that the risks of a fall in the digital asset market remain, however, consolidation and a side trend are a more likely scenario.

And Coinbase linked the change in forecasts of the situation on the crypto market with the rise in prices of digital currencies. Cesare Fracassi, lead economist at the company’s research division, believes that industry expectations are key in shaping the value of a crypto coin.

Prices rise when the industry sees the future in a positive way, and if market participants doubt the prospects of the industry, they fall.

“The most important pillar of the efficiency hypothesis is that any tradable asset, from stocks to bonds, commodities, and even digital currencies, includes in its price the market’s expectations of the asset’s future value. Thus, according to the notion of market efficiency of crypto markets, only changes in industry forecasts can lead to price changes,” Fracassi believes.

Do you agree with this?