The more important question for virtual currency investors is whether this stage of currency price growth is a re-launch of the bull market or a bear market trap.
Bitcoin rose in price in just one hour last night. The price has risen to a maximum of 8100 USD due to the violence of about 6800 USD. During the day it has increased by about 20%. Other virtual currencies led by Bitcoin also recovered significantly, with the single currency gaining more than 50%. Faced with the collective warming of the virtual currency market, many investors shouted that “the bull market is back.”
According to CoinMarketCap, the market value of bitcoin has increased by about $ 20 billion in one day, and the entire virtual currency market has also recorded an overall market growth. There was no “search” effect. According to the daily volume of bitcoin transactions exceeding 9 billion US dollars, billions of additional funds should enter the market yesterday instead of stock funds.
In fact, during the rise of bitcoin, the digital currency trading platform Bitfinex also recorded a number of large acquisitions. With the increase in the purchase of bitcoins, many shorts were forced to close their positions, further expanding the market growth trend. Cypher Capital’s data director Nick Kirk also expressed his approval for this phenomenon. At the same time, he believes that this sharp decline is more likely to be a response to the early release of regulatory pressures.
Pantera Capital Management, one of the world’s largest digital currency hedge funds, says bitcoin has hit rock bottom. $ 6,500 is the low point of the bitcoin bear market. Bitcoin will be higher than this price for most of this year և may even exceed last year’s record high of $ 20,000.
Fundstrat founder Tom Lee also expressed confidence in Bitcoin. He believes that the current Bitcoin P / B ratio և other indicators are almost the same as at the end of 2014 in the bear market և has developed a major technical correction. Based on this, he announced that the value of bitcoin may increase more than three times this year, and by the end of this year, reaching 25,000 US dollars.
Historical data show that bitcoin really grew in the second quarter of the calendar year. In the second quarter of 2011, bitcoin increased by 1964%, in 2012 – by 36.25% … In 2016 – by 61.98%, and in 2017 – by 131%.
Of course, the Bitcoin OTC volume also shows signs of market recovery. Since March, bitcoin trading volumes in Canada, Europe, Vietnam, and Mexico have grown to record highs in Vietnam.
Leading financial institutions such as the giant financial group Soros and the Rockefeller family, leading financial institutions such as the giant hedge fund, will subsequently adopt the financial size of the virtual money market.
However, it should be noted that although Bitcoin is currently experiencing strong growth, it is still in a downturn and has not yet broken effectively. It remains to be seen whether the virtual currency market has really turned around. Investors should always be vigilant և pay attention to position management.
More importantly, the world’s major bitcoin markets, including the United States, have sought to establish regulatory frameworks. The uncertainty of the settlement will inevitably have a greater impact on the short-term development of the virtual currency market. In the long run, a regulated, healthy market can go further.