Cryptocurrencies. Trading forecast and signal for today May 3, 2021
Bitcoin price rose to the $56,500 resistance level. Ethereum reached the level of $2920, and the price of XRP strengthened to $1.57. The total capitalization of the digital currency market was $2.2 trillion.
On Sunday, the quotes of ETH cryptocurrency broke through the level of $2900 and attempted to storm the landmark mark of 3000 Dollars. Cryptocurrency market experts believe that institutional players are behind the current Ethereum rally. Over the past 7 days, large transactions were made in the amount of $116 billion, the total outflow of assets from the exchanges for the period amounted to 10.45 billion. Bitcoin dominance index continues to decline, the share of the first cryptocurrency decreased to 46.5%, and the share of Ethereum increased to 14.7%. On the eve of the analysts of the firm Fundstrat in a weekly report predicted a further increase in the rate of Ethereum to levels above 10,000 in 2021.
From July 1, a new law will come into force in Germany, allowing extra-budgetary funds to invest in crypto assets. Institutional investors prefer such funds, and the demand for them is growing. The German parliament has passed a law allowing managers of the most popular institutional investment funds to allocate 20% for investments in cryptocurrencies. This measure was called a serious strengthening of Germany's position as a center of financial investment, and experts believe that it will contribute to the development of the cryptocurrency industry as a whole by further legitimizing the asset class. The law has been approved by the German Federal Parliament, the Bundestag, and it should soon be approved by the country's Federal Council. The law will apply both to existing special funds and to new ones created by institutional investors, such as financial institutions, insurance companies and pension funds. Theoretically, up to 350 billion Euros can enter the cryptocurrency market only from special funds, and this will obviously have a positive impact on the quotes.
Trading signals for BTC, ETH and XRP cryptocurrencies for today
In the forecast, the price of Bitcoin is expected to rise to the levels of 56800, 57000 and 57500 Dollars. Ethereum will rise to the levels of 2950, 2970 and 3000 USD, and XRP - to the levels of 1.58, 1.60 and 1.63 Dollars.