The cryptocurrency market looks stronger than the stock market, says Azam Khodzhaev, a crypto investor and founder of the CUC crypto community. He recalled the growth of the cryptocurrency rate and noted that, in particular, bitcoin has grown by 50% since January. Khodzhaev told cryptonewsherald on February 28 what this is connected with, what factors influence the exchange rate and predicted the situation in 2023.
According to him, market participants know that everything moves in cycles. Investors are ready to take more risks and understand that the end of the US Federal Reserve System (FRS) rate hike will come soon and the regulator will start to reduce them, he believes.
“The first factor. Expecting positive news from the US Federal Reserve about raising rates, because inflation is slowing down. The rate will fall, which means there will be more money in the market, therefore, more money will be invested in riskier assets,” he explained.
The investor called the second factor halving (halving the reward for miners for the mined block. – Ed.), which is expected in early 2024.
“Halving is the halving of the block reward. That is, now they give approximately six bitcoins (BTC. – Ed.) for a mined block, and a year after halving they will give approximately three bitcoins. This happens every four years. Usually it falls for a year, and grows for three years. In a year there will be a new cycle. Accordingly, the cost of mining bitcoin will grow exactly two times in a year. Now the world average is $15,000, and in a year it will be $30,000,” Khodjaev said.
The crypto investor emphasized that after the halving, the bitcoin rate always increases, and other cryptocurrencies follow it.
“The third factor is that the Chinese authorities, through Hong Kong, are starting to allow institutional and professional investors to enter the crypt at the official level. This has a positive effect on the market. Accordingly, we are now buying and watching a large number of Chinese altcoins, because, first of all, the Chinese will buy projects that come directly from China itself,” he said.
Market participants continue to add cheaper coins to their portfolio and look positively into the future, Khodjaev noted.
“From the negative, there is only the risk of strict regulation by the US SEC (Securities and Exchange Commission, Securities Commission. – Ed.). They took a very strong hold on the largest crypto exchange Binance. And it will be another black swan. The stablecoin BUSD is already on the verge of death. And the token of the exchange itself – BNB – hangs in the balance, ”concluded Khodjaev.
At the beginning of 2023, the bitcoin exchange rate was at the level of $16.5 thousand.
On February 16, BTC rose above $25,000, the highest since August 2022. February 27, according to data cryptocurrency exchange CoinDesk, it is at the level of $23.7 thousand.