But the fact that bitcoin did not want to be annihilated in any way, and large falls are not uncommon for it in history, motivated me to studyhow how to learn to trade crypto in more detail. Fundamental analysis of cryptocurrencies is in many ways similar to macroeconomic analysis. The base currency for trading cryptocurrencies is the US dollar (with its own nuances), and in cases of trading on the futures or spot market, transactions take place on the BTCUSD pair. Consequently, changes in the position of the US dollar in the international financial arena entail changes in the bitcoin exchange rate. But there are also specific features that relate directly to cryptocurrencies. Their knowledge helps to choose the tools with the greatest impact.
At the end of 2019, a pandemic began, which caused international flights and increased demand for safe haven assets: gold and the US dollar. Far-sighted investors began to enter the cache, closing deals on the stock and commodity markets. There was a shortage of liquidity in the REPO market - this led to an even greater strengthening of the US dollar's position. Almost all instruments, including cryptocurrencies, began to fall against traditional savings assets.

This was the first opportunity to make a profit based on a fundamental approach. What happens to the price of a product when its output is sharply increased? She's falling. The same thing happens with currencies.
The issue of bitcoin is limited to 21 million coins, and halving is provided every four years to protect against inflation (the cost of remuneration for mining a block is halved). This contrasts strongly with the monopoly of central banks on the issuance of national currency. While the Fed was actively printing dollars, another halving occurred in the bitcoin system in May – a slap in the face to printing presses from the cryptocurrency market. The profitability of mining fell, which caused an increase in the value of the coin.
Bitcoin is decentralized – it has never been hacked, and pricing is free from the interests of individuals. In addition, it has the characteristics necessary for means of payment: interchangeability and free circulation (with its exceptions).
These circumstances have led to an increase in the number of institutional players

The recognition of bitcoin as a savings tool has led to a boom in purchases of cryptocurrencies on exchanges, and the demand for asics (special mining equipment) has grown among miners. Meanwhile, the recognition of bitcoin has reached a new level! In the fall, PayPal announced the inclusion of cryptocurrencies in its payment system. This news had the effect of a bomb exploding: bitcoin was remembered again, and it began to make headlines again. Since the launch of the service, the company has already expanded its limit on the total volume of cryptocurrencies twice, as demand exceeded all expectations.
The world of cryptocurrencies is not limited to speculation alone, so fundamental analysis bears fruit – I was able to see this from my own experience.