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May 27, 2021, 07:46:02 AM |
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One of the keys to the current situation and something that differentiates it from 2017 is that the global scenario is very different: "In these years we have seen a fairly strong adoption of crypto in countries like Venezuela or Argentina, where the inflationary situation, or mega-inflation, make people pull digital currency to maintain the value of their savings."
The pandemic, of course, has also taken its toll. When it was confined to most of the world's countries, stock markets began to fall sharply and investors, in search of liquidity, began to sell their positions. Bitcoin plunged sharply, dropping to around USD 3,000, and shortly after that, in May, there was another halving. However, after that the value started to take off again.
"The global economic situation has led many people to bet on trading to earn a living in a market where employment is scarce and the health crisis is hitting hard," says Luis Vaello, Binance's regional director in Spain. Looking to the future, and emphasizing that they do not have a crystal ball to know what will happen, Vaello believes that we will continue to see a bullish scenario "not in the price, but in the increasing use". As for the price, the regional director in Spain of Binance highlights that, although Bitcoin fell very aggressively yesterday, it soon recovered and, looking at the graphs, he considers that we are "at a very similar point to 2017", which was when the cryptocurrency really began to take off. Vaello also recalls that in terms of adoption the figures are promising: Binance has not dropped from the top positions in the finance section of the Google and Apple app stores for several months, ahead of all banks and all fintech platforms, and has even positioned itself ahead of other very popular apps such as Instagram or TikTok.
In my opinion, I think we could be facing a promising scenario. However, I don't see Bitcoin with the strength to rise as it did in the past. I think it will be a much more gradual rise and not as strong. There is a possibility of correcting a bit more now that we seem to have entered a Bear market. How do you see it?
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