For investors in virtual currencies, the more crucial question is whether this round of currency price increases is a continuation of the bull market or a bear market trap.
Yesterday evening, Bitcoin saw its price soar in just one hour. About 6,800 U.S. citizens’ acts of violence increased the cost. dollars to a maximum of 8,100 It increased by almost 20% over the course of the day in U.S. dollars. Other virtual currencies also experienced a significant uptick under Bitcoin’s leadership, with some seeing gains of over 50%. Faced with the collective warming of the virtual currency market, many investors shouted that “the bull market is back.”
The website CoinMarketCap reported that Bitcoin’s market value rose by almost 20 billion US dollars. dollars within a day, and the entire virtual currency market also experienced general market growth. There was no “seeking” effect. Bitcoin has over 9 billion U.S. dollars worth of transactions every day, according to data. dollars, there should be billions of incremental funds entering the market yesterday, instead of stock funds.
In fact, Bitfinex, a digital currency trading platform, noted a number of sizable purchases during the peak of the Bitcoin market. As buyers of Bitcoins increased, many shorts were compelled to close their positions, extending the upward trend in the market. Cypher Capital’s data director Nick Kirk also expressed support for this phenomenon. In addition, he thinks that this sudden rebound is more likely to be a reaction to the release of earlier regulatory pressures.
Bitcoin has bottomed out, according to Pantera Capital Management, one of the biggest digital currency hedge funds in the world. The bear market’s low for Bitcoin was at $6,500 USD. The majority of this year will see bitcoin trading above this level, and it may even reach the all-time high of 20,000 US dollars. dollars last year.
Tom Lee, the founder of Fundstrat, also expressed optimism for Bitcoin. According to him, the current Bitcoin P/B ratio and other indicators have formed an important technical correction and are almost identical to the bear market that ended in 2014. Based on this, he predicted that Bitcoin’s value could increase by more than three times this year, reaching 25,000 U.S. dollars at the end of this year.
The second quarter of the year has seen an increase in Bitcoin, according to historical data. Bitcoin increased by as much as 1964% in the second quarter of 2011, and by 36.25% in 2012… 61.98% in 2016 and 131% in 2017.
Of course, the OTC volume for bitcoin also reveals signs of a market recovery. Trading volumes for bitcoin have increased and surpassed records since March in Canada, Europe, Vietnam, Mexico, and Vietnam.
The financial size of the virtual money market will increase with the subsequent admission of important financial institutions like hedge fund tycoon Soros and leading financial family Rockefeller.
The fact that Bitcoin is still in a downtrend channel and has not yet been effectively broken, despite the fact that it is currently on a strong rise, should be noted. It is unclear whether the market for virtual currencies has actually turned around. Investors should maintain a high level of caution and focus on position management.
More importantly, major Bitcoin markets around the globe, including the US, have worked to create regulatory frameworks. The regulatory ambiguity will unavoidably have a bigger effect on the short-term growth of the virtual currency market. An orderly, healthy market has the potential to grow over time.