The analyst predicted a gradual recovery of bitcoin by spring

After rebounding from $60,000, bitcoin is experiencing a difficult period of calm before the storm. It remains in a narrow range of sharp fluctuations until the end of this week, but a gradual recovery is expected by early spring. Alexander Baryshnikov, the manager of the Mining fund at Record Capital Management Company, told Izvestia on February 17.

The expert urged not to give in to emotions and remember that it is in such boring and scary moments that the foundation for future growth is usually laid.

"The price froze in a narrow corridor of about $ 68 thousand, like a compressed spring that is about to shoot. The market is tired of bad news and mass liquidations. Investors' funds are still being noticeably withdrawn from spot funds (ETFs), and in the media space they are again being intimidated by the "quantum threat," he said.

According to the analyst, against this background, many small market participants are nervous and sell assets, fixing losses after bitcoin's fall from the historical maximum of $ 126199 by almost 50%.

At the same time, Baryshnikov stressed that while retail is panicking, major players such as Strategy and the Japanese Metaplanet are quietly and aggressively buying up coins, ignoring paper losses. According to him, they know that current prices are a great opportunity to stock up on bitcoin before the next growth cycle.

The expert also drew attention to the fact that projects are actively developing on the global market through the creation of closed-end mutual funds for qualified investment investors in bitcoin mining. According to Baryshnikov, they have also received dynamic development in Russia.

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"Due to the current market price situation before the new growth cycle of bitcoin and the highly developed infrastructure of the industrial mining industry in Russia, by the beginning of spring, the most attractive conditions for investors to enter the market had formed," the specialist added.

Baryshnikov called the actions of the US Federal Reserve System (FRS) the main intrigue of the current week. He clarified that the FOMC meeting minutes and important economic data on inflation will be released on Wednesday and Friday.

According to the expert, if inflation turns out to be below the forecast (0.3% mom and 3.0% yoy), there is every chance to see a sharp rebound of bitcoin upward and a test of the level of $71-72 thousand. However, if the data disappoints or the Fed's rhetoric remains harsh, bitcoin may briefly dive down to test the strength of support in the region of $ 60–$ 61.5 thousand.

Baryshnikov reported on February 11 that capital inflows to bitcoin remained weak. He clarified that the market is in a waiting state, and investors are refraining from making large bets until there is clarity on macroeconomic data.

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