Analyst Andy Hecht listed a number of factors that will consolidate momentum:
The market capitalization of the cryptocurrency asset class was back above the $ 2 trillion level at the end of last week, so the bulls are back in control. There are three factors that continue to favor the rises of bitcoin, Ethereum and many others of the more than 11,460 digital currencies in this asset class.
- The inflationary pressures they continue to rise due to the Fed’s monetary policy and US government fiscal stimulus. Although the central bank begins to reduce its quantitative expansion program, the government is about to approve trillions in infrastructure and other spending initiatives. The rise in prices of all asset classes is bullish for cryptocurrency values.
- The faith and credit given to fiat currencies continues to erode. Cryptocurrencies embrace a libertarian ideology that shifts control of the money supply from the government to individuals. As faith and credit in the dollar, euro, and other reserve currencies wane, cryptocurrencies become an alternative.
- America’s withdrawal from Afghanistan has been nothing short of a disaster. In this difficult context, cryptocurrencies transcend borders and have become the flight capital instruments par excellence. Those who fear political changes and outbreaks of violence in their countries are likely looking to cryptocurrencies for a way to protect and transport their wealth in times of turmoil.
The analyst believes that: “Bitcoin, Ethereum and the cryptocurrency asset class will record highs in late 2021. However, there are risks in this highly volatile asset class.”
Cardano seems to want to rank third between Bitcoin and Etherum. This coin that soared 1,384 percent in the year and reached a capitalization of 86,000 million dollars, according to the Coinmarketcap ranking.
With this rise, it has become the third largest digital currency in the world by size of its market, thanks to the expectations raised by the rise of decentralized finance (DeFi).
In altcoins, Solana (SOL) and Polkadot (DOT) were the most prominent among the top ten cryptocurrencies by market capitalization. Solana continued to hit new highs, gaining 19% on the day to around $ 120, while Polkadot added 9.2%. Ether (ETH) was on the move as well, up 5% and above $ 3,350.
In the last week, those who registered the highest growth were Solana (56.61%), Polkadot (4.59%) and Etherum (2.60%).