The situation on the crypto market has stabilized: which vector will become dominant?

Over the past 24 hours, there have been no qualitative changes in the digital currency market. Bitcoin (BTC) briefly broke above $58,000 on the morning of October 14, but quickly retreated. Now the situation is generally stable, and so far there are no signs of aggravation of volatility.

Among the most important events in the cryptosphere, it is worth paying attention to the attitude of Russian President Vladimir Putin towards cryptocurrencies and the inclusion of Belarusian miners in a separate category of electricity consumers.

In addition, we will consider the document adopted by the G7 countries on national digital currencies (CBDC), as well as analyze the forecast of Fidelity Investment top manager Jurrien Timmer on the immediate prospects of bitcoin.

Can Bitcoin hit $60,000 today?

During European trading on October 14, the BTC price sank to $57,533. The capitalization of the leading digital currency is now $1.089 trillion. The largest altcoins retreated the day before, but today they began to grow more confidently in price.

Polkadot (DOT) achieved the best results from the TOP-10, the price of the coin soared by 18.3%, reaching $41.33. Ether (ETH) and Binance Coin (BNB) added about 4% to $3,730 and $480, respectively.

Cardano (ADA), XRP and Solana (SOL) are up 3%. Their price was $2.19, $1.14 and $153. Market capitalization on Thursday increased to $2.403 trillion, the Bitcoin dominance index is now 45.5%.

According to Glassnode, there have been no big changes on the trading floors yet. Cryptocurrency volume on platforms is still at its lowest level since August 2018 (around 2.45 million BTC).

However, in general, this is a positive signal, analysts say. Investors are still refusing to bring cryptocurrencies to exchanges, so do not expect increased pressure from sellers in the coming days.

Most likely, the slow strengthening of the bitcoin rate will continue, although observers do not exclude the periodic downward correction of the cryptocurrency price.

What about the chances of a breakout to $100,000?

Despite a very good performance in October, the first cryptocurrency still does not have enough chances to reach $100,000 by the end of 2021. This view is shared by Jurrien Timmer, who heads the research division of Fidelity Investment.

According to his forecasts, the value of bitcoin will indeed grow in the long term. However, explosive expansion should not be expected. We will most likely see $100,000 per coin in 2023, the expert said on CNBC.

At the same time, he acknowledged that institutional interest in digital currency has intensified.

Skew data confirms the position of the top manager of the investment company. This week alone, on the Chicago Exchange (CME), open interest in bitcoin futures set a new record.

Note that this product became available on the exchange back in 2017, before the first famous BTC run, when the price of the asset in December on some trading floors exceeded $20,000.

Vladimir Putin commented on the situation in the cryptosphere

The Russian authorities are categorically against the use of digital currencies in the country as payment instruments. The law adopted by the State Duma and signed by the President states that cryptocurrencies are equated to property. They can be gifted and passed down from generation to generation.

Recall that this bill came into force in January of this year. This week, Russian President Vladimir Putin gave an interview to CNBC, during which he outlined his position on this issue. In his opinion, it is too early to allow Russians to use cryptocurrencies as a payment instrument. Moreover, they cannot be used when trading in goods, for example, oil.

At the same time, the popularity of digital assets is growing despite the fact that they have no collateral.

According to Putin, cryptocurrencies have a right to exist, and the state needs to monitor their further development, but for now it is not worth endowing such instruments with payment functions.

Miners under the hood of the authorities

Meanwhile, in neighboring Belarus, the authorities decided to include miners in a separate category of electricity consumers. According to the Ministry of Energy, with the help of the new system, the state will be able not only to control the activities of citizens involved in crypto mining, but also to charge them at special rates.

The government decided to divide the miners into four groups depending on the amount of electricity consumed (from 25 million to 500 million kWh).

Russia also has plans to introduce special tariffs for individuals and legal entities mining cryptocurrencies. However, while the Ministry of Energy of the Russian Federation is only discussing options for charging miners.

G7 countries are engaged in central bank tokens

In the middle of the week in Washington, the rules for the regulation of national digital currencies (CBDC) were approved. The heads of financial departments of the G7 countries approved 13 principles of state policy in the banking and IT sectors.

The G7 has set itself the task of preventing the destabilization of the situation in the global economy after the appearance of central bank tokens. The finance ministers agreed to cooperate in the field of ensuring control over innovative instruments. The countries’ joint statement also notes that CBDCs could become liquid settlement instruments. In addition, regulators will receive legal and technical ways to control fiat-backed digital currencies.

At the moment, several countries are already far advanced in creating a CBDC – China has begun testing the token, and some European countries are preparing to begin their tests in the coming years.

Sources: CoinMarketCap, Twitter, Bitcoinist, CoinTelegraph, officelife.media, ByBt, RBC