Why Bitcoin Bull Market (Why Bitcoin Rises Isolated)
Why Bitcoin Bull Market According to CoinDesk report, a Bloomberg report showed
Why Bitcoin Bull Market According to CoinDesk report, a Bloomberg report showed that Bitcoin has risen nearly 30% in the past month, from $50,000 to $100,000. Since March, the price of Bitcoin has been fluctuating between $9,000 and $9,500. Although recent price performance has shown some uncertainty, the market is still in a bull market.
Why is there such a large increase? Why Bitcoin Bull Market? We can use the following chart to illustrate.
Image Source: TradingView.com
When you observe the behavior of a trader or investor, you will find that their views on this industry are very similar- “they believe that cryptocurrency is the future store of value.” So the question is, “Bitcoin is an asset just like gold.” But, without this scenario, the concept of “Bitcoin” would not exist; in fact, it is just a digital wallet (similar to other cryptographic applications). “If you are an investor, and you believe that a small part of these portfolios will be held long-term, you will see Bitcoin as a feasible alternative. So, consider what Bitcoin is?”
Bitcoin was born on April 1, 2011. At that time, a large number of analysts referred to it as a “bubble” and had great potential to make the industry more mainstream. However, due to its new technology and ever-changing characteristics, some commentators have begun to question whether this phenomenon is real. For example, Bitcoin early developers Satoshi Nakamoto, Bitfinex CEO Zhao Changpeng, and others supported Bitcoin. However, when Bitcoin was designed to be a tool capable of carrying a global trillion-dollar financial system, many people regarded it as a safer and more efficient payment system than fiat currency.
Over time, the number of addresses on the Bitcoin network has also increased, and more and more Bitcoin addresses are turning to this blockchain. It is still unclear which addresses are using this blockchain. In addition, many users want to achieve decentralized fund transfers through smart contracts or just want to buy BTC. However, some people believe that this method may be complicated because they cannot access their personal data.
Why Bitcoin Rises Isolated
Editor’s note: This article comes from cybtc_com, Author: cncoin, authorized reprint from Odaily Planet Daily.
Bitcoin has risen nearly 5% in the past 24 hours and has now broken through $9,000. Why? Because Bitcoin has been performing well since December last year, and as market sentiment gradually warms up and starts to rise, its price trend is very strong and continues to grow. There are two factors behind Bitcoin’s future performance and how its price will change: 1. The total market value of global cryptocurrencies hit a new high; 2. Cryptocurrency trading volume surged, and institutional investors entered the world of cryptocurrencies.
According to statistics, in the first half of this year, a total of over $300 million flowed into global cryptocurrency exchanges, with the United States accounting for about 10%, followed by Canada ranking third and Germany closely behind. In addition, Europe respectively reached 8% and 16%, Asia only 6%, and other countries about 7% and 9%. According to BitInfoCharts, as of the end of November, the total Bitcoin reached 10,000; the total Ethereum reached over 90,000; the total XRP was 1 million.
Although it is generally expected that BTC will rebound by 50% or even more before the end of October, the recent market overall volatility is large, which has led to the price of Bitcoin’s unique rise. Therefore, many people will think that this is a signal of a bull market. So the question is: why can Bitcoin rise so much in such a short time? (Figure 1)
If we look at the timeline, you will find that Bitcoin has a natural correlation and close relationship with traditional safe-haven assets such as gold. For gold, it is a safe haven tool that can be used to hedge risks or as a means of value preservation. It can also be used for investment in stocks or bonds and other underlying assets, and can also be used for other purposes. At the same time, Bitcoin also has its characteristics. For example, its supply limit is fixed at 21 million, and it halves every four years. This makes it a scarce resource in the world and has strong resilience. Therefore, when people buy Bitcoin, they will see more demand pouring in, leading to higher demand and pushing up the price, which is called “store of value.” On the other hand, the main reason why Bitcoin rises alone lies in a phenomenon, that is, due to the fact that central banks of various countries are taking a large number of stimulus measures to deal with issues such as the pandemic and inflation. Bitcoin is now known as a “virtual treasury”. Although many countries are using policy interventions to control inflation rates, they actually have no actual effect. Moreover, many other countries’ economies are being severely hit, especially China. The economic situation in these regions seems to be getting worse, especially in the downward trend of our country’s economy. It may take some time to be effectively eased, which is also the fundamental reason why the current price of Bitcoin repeatedly hits new highs.
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