Bitcoin in the year of COVID

In the first half of 2021, which now closes on June 30, the asset that had a very positive first half despite recent losses in 2021 was bitcoin.In an uptrend, until the middle of the end of April, the cryptocurrency traded close to US$ 63,500: a 1,300% appreciation accumulated in 12 months.Specialists, from a consultancy contracted by Forbes, believe that digital currency should reach new heights in the coming years: the BTC could reach, if there is no state or geopolitical interference, to US$ 100,000 in the next two years and in US$ 300,000 until 2026.These projections are due to two factors:1) Unlike paper money, BTC is a deflationary currency by definition. Its issuance is 100% programmed and reduced over the years, which makes it increasingly sought after by its shortages in the market.It is estimated that there are 18 billion bitcoins in circulation and every four years, the issuance of new digital coins is halving. In this way, the decrease in supply does not mathematically affect demand.2) The adoption of cryptocurrencies among large investors: institutional and companies, during the pandemic, reinforces the security of a larger volume and future long-term expansion for the cryptocurrency market.Nickel, a British financial analysis consultancy, had released, last Tuesday (15th), a report listing 19 publicly traded companies on stock exchanges, which already have some backing allocated in bitcoin. According to these companies, futures trading volume would total $6.5 billion in digital currency.Right now, geopolitical concerns and controversies surrounding cryptocurrencies: the carbon footprint of bitcoin mining and the use of crypto for hacker financing – remain to be watched by regulators.When in May this year, Tesla's boy said that Tesla would no longer accept bitcoin as a means of payment due to the strong demand for energy for his mining, prices fell by about $20,000 within a week. In a pure wave of speculative attack, to later recompose, overvaluing the amount he had!However, in the last 10 years, bitcoin has registered an accumulated appreciation of 6,300%, which means that all investors who have committed capital cannot simply leave the amount invested lightly.Correction trends in bitcoin prices, as predicted by Elliot's Waves theory, are necessary corrective and repositioning movements in the market - like any other asset.In other words, like any asset, after a strong rally, there are corrections. The logic is that excessive propagation, in 2020, together with the pandemic and the reclusion of many investors, made it attractive to manipulate the currency to earn profits at home and quickly!Thus, by increasing the offer of bitcoins for sale, they forced, even if indirectly - or anticipated - the repositioning of the currency.Anyway, the trend remains extremely positive, the RSI chart shows a rapid devaluation, which is approaching 70%, which will soon indicate an increase.The question is to know when the RSI will leave 70% and start to rise.The BTC, at the moment, is going through a phase of accumulation necessary for new upward movements to be initiated, in short.This low favors that new companies and large investors bring new financial volumes to leverage and give security to bitcoin.Namely, a bigger casualty, or not, will depend on the advance of the policies of the State Council of China, which seek to regulate the activities of trading and mining of cryptocurrencies.In this way, cryptocurrencies ceased, in the near future, to be day-trade businesses and become a long-term strategy for the investment portfolio.In place were tokens and DefI, for risks, uncertainties and day-trade. In this sense, the long-term market becomes more stable, offering less instantaneous gains, but more possibilities for medium-term returns - like shares in futures market, yielding dividends due to the difference in investment.Bitcoin is not a simple digital currency, it is a comparison value between other currencies and, from now on, assets of real companies.This will force regulation for sure!Enjoy the romantic times, as they will soon be a thing of the past!