A more important question for virtual currency investors is whether this round of rising currency prices will restart the bull market or the bear market trap.
Bitcoin rose in just one hour last night. The price has risen from a violent $ 6,800 to a maximum of $ 8,100. Increased by about 20% during the day. Under Bitcoin’s leadership, other virtual currencies also rebounded strongly, with single currency earnings even surpassing 50%. Faced with the collective warming of the virtual currency market, many investors shouted, “The bull market is back.”
According to the website CoinMarketCap, the market value of Bitcoin increased by about $ 20 billion in one day, and the entire virtual currency market also experienced a general market growth. There was no “search” effect. According to the data, the daily trading volume of Bitcoin exceeds 9 billion US dollars, yesterday the market should receive billions of dollars instead of equity funds.
In fact, during the rise of Bitcoin, the digital currency trading platform Bitfinex also recorded a number of major acquisitions. With the increase in the purchase of Bitcoins, many shorts were forced to close their positions, further expanding the upward trend in the market. Nick Kirk, information director of Cypher Capital, also confirmed the phenomenon. At the same time, he believes that this sharp rebound is more likely to be a response to the release of early regulatory pressures.
Pantera Capital Management, one of the world’s largest digital currency hedging funds, said Bitcoin had reached the bottom. $ 6,500 is the lowest point for the Bitcoin bear market. Bitcoin will be above this price for most of this year, and may even exceed last year’s record of $ 20,000.
Fundstrat founder Tom Lee also said he trusted Bitcoin. He believes that the current Bitcoin P / B ratio and other indicators are almost the same as at the end of the market in 2014 and formed an important technical correction. Based on this, he said that the value of Bitcoin could more than triple this year and rise to $ 25,000 by the end of this year.
Historical data show that Bitcoin actually rose in price in the second quarter of the calendar year. In the second quarter of 2011, bitcoin rose by 1964%, in 2012 by 36.25% … in 2016 by 61.98%, in 2017 by 131%.
Of course, the volume of Bitcoin OTC also shows signs of market recovery. Since March, bitcoin trading in Canada, Europe, Vietnam, Mexico and Vietnam has reached record levels.
The financial dimension of the virtual money market will be further expanded with the consistent adoption of large financial institutions such as the hedge fund giant Soros and the Rockefeller family of the best financial group.
However, it should be noted that although Bitcoin is currently showing strong growth, it is still on a downward trend and has not yet been effectively broken. It remains to be seen whether the virtual currency market will actually turn upside down. Investors should always be vigilant and focus on managing positions.
More importantly, the world’s major Bitcoin markets, including the United States, have sought to establish regulatory frameworks. Uncertainty of regulation will inevitably have a greater impact on the short-term development of the virtual currency market. In the long run, a regular, healthy market can go even further.