On Thursday, bitcoin made another attempt to gain a foothold above the important psychological level of 50,000 amid the general weakening of the dollar. The decline in the dollar and the growth of risky assets occur against the background of the growing likelihood that the Fed will postpone the start of the process of curtailing the quantitative easing program.
As a condition for the beginning of the curtailment of incentives, representatives of the Fed called a steady improvement in the employment situation. However, the data released on Wednesday on the change in the number of employees from ADP turned out to be significantly worse than expected. On Friday, the attention of market participants will be focused on official statistics on the labor market, which will affect the formation of expectations regarding the possible period of the beginning of the curtailment of incentives.
The total capitalization of the cryptocurrency market has increased by $ 131 billion since Monday, reaching 2.22 trillion. Meanwhile, the media reported that Twitter (NYSE:TWTR) will be able to provide bitcoin donations to content creators.
Venture capitalist Tim Draper confirmed his forecast for bitcoin
According to the investor, the price of the main cryptocurrency will reach $250,000 in 2022. Draper noted some trends that, in his opinion, will become the driving force of bitcoin. One of these trends is the widespread use of bitcoin. He noted that over time, people will be able to use bitcoin the way they currently use fiat currencies.
The second trend, which, according to the billionaire, will contribute to the growth of the bitcoin price, is an increase in the inflation rate. Since governments are constantly printing money, people have become worried about the future of their savings. This will encourage many to invest in bitcoin as a way to insure against the inevitably high level of inflation that will follow the unlimited issue of money.
According to technical analysis, a breakdown of the resistance of 50500 will open the way to 52800. In case of consolidation below 49400, a decrease to 46700 is likely.