@BOMBERuss 5 February 2022 more from that month

Strong growth of Bitcoin and Ethereum suggests parallels of 2017. The Bitcoin exchange rate broke through the level of $ 41,400, the main cryptocurrency became the leader of daily trading in the top-10 rating, showed double-digit positive percentage growth for the first time since the beginning of the year. The record rise of BTC indicates a significant influx of institutional investments that have not bypassed Ethereum, the largest altcoin has also added value by a double-digit percentage. Institutional investors are increasing investments in cryptocurrency, despite a strong drawdown of capitalization, which lost 50% of its value at the beginning of the year. The injections take place at the moment when Central Banks announce a quantitative tightening program (QT), which leads to the withdrawal of liquidity, depriving financial asset markets of a traditional growth support tool. In the 21st century, the US Federal Reserve first applied QT in the fall of 2017. Bitcoin was then in a difficult situation having lost 50% a month before the decision of the American financial regulator to start reducing the balance. As now in January, many analysts made negative forecasts of further decline and even the disappearance of the cryptocurrency, but in October BTC has already rewritten the highs, ending the year at $ 20,000. The unprecedented rally of digital assets at that time was due to the participation of institutional investors who paid attention to them, thanks to China, Japan and the United States. At that time, exchanges were actively opened in China and mining was developing. Japan sensationally recognized BTC in 2017, the American stock exchange CME was preparing to launch crypto futures. Five years ago, the institutionals saw in BTC an opportunity to hedge the risk of inflation. The bet worked, but too rapid growth and the emergence of cryptocurrencies caused a crushing drop in cryptocurrencies in 2018. Now a similar situation has been created, investors are withdrawing funds from stocks and diversifying investments, shifting part of them into digital assets. It will probably be possible to see new Bitcoin highs soon, but only until the moment of the highest point of pressure from the Regulator. In 2018, the crypto market collapsed when the Fed rate rose to one and a half percent, and the balance decreased by $ 300 billion. At the moment, the rate is 0.25% and will begin to rise only in March, by the way, the QT program will start at the same moment.