“We are witnessing a certain decline in interest in the crypto. Until April, virtual coin exchange rates were on a strong growth trajectory. Some investors realized massive losses, others realized that realizing a dizzying profit on cryptocurrencies is not as easy as it seemed in previous months, “says Cyrrus economist Tomáš Pfeiler.
It is said that the “unhealthy” part of investors who saw the modern clondicate in the cryptocurrencies left the market. “Speculators looking for dizzying enrichment or adrenaline have learned to invest in other assets, typically meme stocks,” adds Pfeiler.
The activity of speculators began to increase sharply at the beginning of the year, along with more expensive cryptocurrencies. Most of the money flowed through the cryptocurrency market during the dramatic fall of coins in the second half of May. The massive decline in the activities of coin speculators was also reflected in a significant decline in the value of the cryptocurrency market.
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According to coinmarketcap statistics, it fell from more than $ 2.5 trillion in mid-May to the current $ 1.27 trillion, or about half. The market thus has the lowest value since February this year.
“The great public interest increases the volume of business by an order of magnitude and vice versa. The technical analysis of the last wave of public interest is confusing, the long-term view is important, and there is no need to predict anything, bitcoin is a deflationary currency and the whole industry can only grow, “says Mário Havel, a member of hackerspace Bordel from Parallel Polis.
Most money is not attracted to the still dominant bitcoin. According to Coingecko statistics, by far the largest volume of trades, almost $ 1.5 trillion, has taken place in the tether currency over the past thirty days, followed by bitcoin and closely followed by ethereum.
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Economists recall that major central banks continue to print money, which creates suitable conditions for a renewed growth in the value of cryptocurrencies and business activity. “There is an extreme reservoir of free money. In the USA and other countries, the money supply is growing rapidly, ie the amount of money circulating in the economy.
The main reason is the extremely expansionary policy of central banks since last spring, “says Pavel Ryska, an economist at J&T Banka, adding that the rate of growth of money in circulation is the fastest overseas since the end of the Second World War.
“When new money flows into the economy on a large scale, investors place it in traditional assets at some point, but then they also start looking for alternatives. Cryptocurrencies are just one of them, “adds Ryska. The US Fed is the most active in this direction, and the European and Japanese central banks are also massively increasing the amount of money in circulation.
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