For cryptocurrency investors, the most important question is whether this round of currency appreciation is a bull market restart or a bear market trap.
Yesterday evening, Bitcoin saw a sharp price rise in just one hour. The price of violence rose by about $6,800 to a maximum of $8,100. It’s up about 20% during the day. Under the leadership of Bitcoin, other virtual currencies also led to a strong recovery, with the common currency gaining more than 50%. In the face of the collective warming of the cryptocurrency market, many investors shouted that “the bull market is back.”
According to data from the CoinMarketCap website, the market capitalization of bitcoin has increased by nearly $20 billion in a single day, and the entire virtual currency market has also seen an overall growth in the market. There was no “quest” effect. According to the daily Bitcoin transaction volume exceeding $9 billion, there should have been billions of additional funds entering the market yesterday, rather than stock funds.
In fact, at the time of the Bitcoin boom, Bitfinex, the digital currency trading platform, also recorded a number of large purchases. With the increase in bitcoin buying, many short positions were forced to close their positions, which further extended the upside of the market. For this phenomenon, Nick Kirk, director of data at Cypher Capital, also agreed. At the same time, it is also believed that this sharp rebound is likely to be a response to the release of early regulatory pressures.
Pantera Capital Management, one of the world’s largest cryptocurrency hedge funds, said that Bitcoin has bottomed. $6,500 is the low point of the Bitcoin bear market. Bitcoin will be above this price for most of this year and may surpass the record high of $20,000 USD last year.
Fundstrat founder Tom Lee also expressed his confidence in Bitcoin. He believes that the current Bitcoin P/B ratio and other indicators are roughly the same as the bear market at the end of 2014, which constituted an important technical correction. Accordingly, he stated that the value of Bitcoin could rise more than three times this year and rise to $25,000 at the end of this year.
Historical data shows that Bitcoin has actually risen in the second quarter of the calendar year. In the second quarter of 2011, Bitcoin rose as much as 1964%, 36.25% in 2012… 61.98% in 2016 and 131% in 2017.
Of course, Bitcoin OTC volume is also showing signs of market recovery. Since March, bitcoin trading volumes in Canada, Europe, Vietnam, Mexico and Vietnam have soared and reached record levels.
With the successive admission of major financial institutions such as hedge fund giant Soros and the major Rockefeller Financial Group, the financial volume of the virtual money market will be further expanded.
However, it is worth noting that while Bitcoin is currently on a strong rally, it is still in a downtrend channel and has not been effectively broken yet. It remains to be seen if the cryptocurrency market has actually reversed. Investors must always be vigilant and vigilant to manage the situation.
More importantly, the world’s major bitcoin markets, including the United States, have sought to establish regulatory frameworks. Uncertainty about regulation will inevitably have a greater impact on the short-term development of the virtual currency market. In the long run, an orderly and healthy market can go even further.