Forecast for cryptocurrencies BTC, ETH and XRP for May 28, 2021
Bitcoin strengthened to the level of $39,100. Ethereum rose to $2,800, while XRP rose to 98 cents. The total capitalization of the digital currency market was $1.72 trillion.
Large investors took advantage of the collapse in bitcoin prices last week to build up their positions. According to the analytical company Chainalysis, the whales bought 77,000 bitcoins. On May 19, the first cryptocurrency failed the support level around 40,000 and pulled the rest of the market down with it. At the moment, the price of digital gold touched the 30,000 mark, but then corrected above 36,000. During this period, 75% of transfers were received on cryptocurrency exchanges from other trading platforms. This indicates the activity of market makers and traders engaged in arbitrage. Miners accounted for only 1% of the revenue. In dollar terms, investors lost at least $ 3.2 billion on the fall of bitcoin. For Ethereum, this figure is smaller, but the overall picture is similar.
Timothy Lane, head of research at the Bank of Canada on fintech and cryptocurrencies, said that the regulator is working on more specific options for applying a state-owned stablecoin, how such an asset can look and work. But so far, no scenario has been invented in which the national digital currency could defeat its counterparts. Previously, Lane has repeatedly talked about the possibility of issuing a state-owned cryptocurrency by the Bank of Canada. So far, such a currency has more risks than advantages, but the pandemic and the associated crisis create many prerequisites for an accelerated launch of the asset. The idea of launching a digital Canadian dollar from the Bank of Canada appeared back in 2017, but it did not go further than research and public statements. According to the Chairman of the Bank of Canada, Tiff Macklem, global coordination of such projects is necessary for the launch of stablecoin.
Signals for trading cryptocurrencies Bitcoin, Ethereum and XRP
In our forecast, we expect the bitcoin price to decline to the $39,000, $38,500, and $38,000 levels. Ethereum will decline to the supports of $2,700, $2,500, and $2,200, while XRP will fall to the levels of 95, 92, and 90 cents.