Bitcoin continues its growth and so far, it is unclear what can stop it. The cryptocurrency continues to gain impulse and moves confidently towards its annual and absolute highs. It was already noted that that the recent fundamental background, if not absent, then at least very weak. This means that there is simply no news throughout last month from Elon Musk or Cathie Wood regarding Bitcoin. In addition, there is no news that one or another large bank has integrated bitcoin or other cryptocurrencies into its activities. There are also no reports that this or that large company has added the ability to pay with bitcoins for goods or services. Therefore, we still believe that Bitcoin's current growth is in some way accidental. Although, it seems that all the recent trends in BTC were somewhat random.
Meanwhile, Bitcoin will become the official means of payment tomorrow in El Salvador. In principle, such a decision by the authorities can be called an experiment, since, no one actually knows what this step will lead to. 75% of El Salvadorians are skeptical about this idea and oppose it. However, President Nayib Bukele believes that this law will attract foreign investors, which will have a beneficial effect on the country's economy. Moreover, Bitcoin can allow for cheaper and faster cross-border transfers. This is especially true for residents of the country, since many of them are working in other countries and, accordingly, often send money home. With the help of the leading cryptocurrency, it is much easier and cheaper to do this. However, it is still impossible to say at the moment that the country has all the necessary infrastructure for quickly obtaining bitcoin and converting it into the national currency.
On another note, Bitcoin miners' revenues are rising again. They amounted to $ 1.4 billion at the end of August. This is 40% more than in the month of July. However, this growth is due to the fact that Bitcoin's price has significantly increased over the past month, and not because there is more mining.
At the same time, we were not the only ones who began to be interested in the reasons and validity of the current growth of bitcoin. JPMorgan analysts also warn their clients that the market is overheated and a correction phase may soon begin. The bank's analysts warn that the share of altcoins in the cryptocurrency market has already increased to 33% – approximately the same value was observed in May, when the collapse occurred. However, other experts believe that the altcoin season has just started (or resumed) on the crypto market. It can be recalled that this is the name of the phenomenon in which various alternative cryptocurrencies come to the fore for investors, rather than traditional digital assets, which are already very expensive and have much less growth potential than yet untapped coins.The material has been provided by InstaForex Company - www.instaforex.com