Not a corrections or a rebound. What's going on with bitcoin

The value of the first cryptocurrency fell to $53 thousand and then returned to levels above $57 thousand. What is the reason of such dynamics and whether the asset keeps chances to renew its historical maximum?

On November 29, the Bitcoin rate on the cryptocurrency exchange Binance rose above $58 thousand in the morning. Within hours, the first cryptocurrency rose in price by $5 thousand. The price of the asset increased sharply after having fallen to $53.2 thousand on Sunday evening. As of Monday, 19:55 Moscow time, the asset is trading at $57.3 thousand.

BTC's fall to $53,000 and the subsequent rise to $57,000 cannot be considered either a strong correction or a powerful rebound, Bitcluster co-founder Sergey Arestov is sure. He explained that the decline in the value of the asset was caused by information about a new strain of the Omicron coronavirus. It is spreading faster than its predecessors and could affect more people, including those who have previously contracted other strains, the WHO suggested.

"The entry of institutional investors into the market prevents bitcoin from long term sagging below $50k, and the ban on mining in China has almost concreted the bottom of BTC at $30k. Large mining companies such as Riot Blockchain, Argo Blockchain may not sell mined for years as they have stock funds to pay for power," the expert explained. He added that there are fewer and fewer offers to sell Bitcoin on exchanges, which could trigger a new round of growth.

One of the reasons for the resumption of crypto market growth was a high-profile article in the Washington Post, which explained the futility of lockdowns from a new strain of coronavirus, EXMO cryptocurrency exchange development director Maria Stankevich added. In her opinion, following the release of the material, the bulls almost completely bought out Friday's plum.

The expert named several important events that will take place this week and may turn the market in the direction of an uptrend: in each of the five days of this week, state financiers are scheduled to speak: Japan, the European Union, the UK and Canada, as well as the head of the Fed and the US Treasury Secretary.

"I am almost certain that if monetary policy tightening is postponed - we will see a bullish trend and a new historical high for bitcoin. I think that at achievement of $64.8 thousand we will see a new growth and possibility of reaching a new maximum," Stankevich concluded.