Bitcoin is awaiting a sustained bullish trend that was already evident at the $6,000\u2013$7,000 level. This was stated to ForkLog in a commentary by Evgeny Kogan, professor at the Higher School of Economics (HSE).<\/p>\n
According to him, price movement of the first cryptocurrency should be tracked only by trends:<\/p>\n
\n\u201cI would be the greatest fool if I gave price forecasts. I am extremely negative about statements that \u201cBitcoin will be at $25,000 or at $50,000.\u201d This is not something anyone can know. The only thing one can foresee is trends. When Bitcoin was still $6,000\u2013$7,000, I wrote that, obviously, the trend was \u201cup\u201d and likely for quite a while.\u201d<\/p>\n<\/blockquote>\n
Among the reasons contributing to Bitcoin\u2019s growth, Kogan cited central banks\u2019 money printing and a large inflow of liquidity into traditional financial markets.<\/p>\n
\n\u201cWhen there is a lot of liquidity, some of it goes into the cryptocurrency market. Regulation of traditional exchanges is also rising \u2013 today it is catastrophically difficult to carry out any payment. Naturally, in this context cryptocurrency is a solution to problems for some people; there is demand for it.\u201d<\/p>\n<\/blockquote>\n
Professor at the HSE noted that traditional models for forecasting future profits do not work for investments in cryptocurrency:<\/p>\n
\n\u201cUnlike stocks, where there is a clear cash flow and a specific value of companies, or bonds, where you can assess the issuer\u2019s solvency and yield on coupons, investing in cryptocurrency is precise investments that do not yield positive digital flow. However, cryptocurrencies have consumer value.\u201d<\/p>\n<\/blockquote>\n
The expert called p2p transfers an important consumer property of cryptocurrencies:<\/p>\n
\n\u201cWith a single click, money ends up with the recipient and no one asks on what grounds the transaction was carried out. Many people use cryptocurrency as a means of payment.\u201d<\/p>\n<\/blockquote>\n
At this stage, regulators are the main enemies of digital assets, the professor believes.<\/p>\n
\n\u201cTransactions in cryptocurrency undermine the principles of compliance that regulators fight for, so there is a clash of opposites,\u201d added Evgeny Kogan.<\/p>\n<\/blockquote>\n
Earlier experts told ForkLog about the reasons for the rapid growth<\/a> of the first cryptocurrency.<\/p>\n