In the upcoming 2019, the cryptocurrency market has experienced a small spring in March and April. At a time when everyone was looking forward to the bull market, they were bearish. This winter is still a bit cold. When is the spring of cryptocurrency coming? BitpushNews took stock of 4 important moments that have changed the trend of the cryptocurrency market over the past year.
On April 2, Bitcoin rose 18% in a single day, opening a bull market in the crypto market
In the first quarter of 2019, the entire cryptocurrency market continued its decline at the end of last year. Although it stopped the downward trend, the market was extremely sluggish, and Bitcoin continued to fluctuate between $ 3,300 and $ 4,000. A three-month low formed the bottom of this wave of bear markets.
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On April 2, Bitcoin rose by 18% in a single day, breaking the $ 5,000 mark in one fell swoop, blowing the horn of a bull rally. Driven by Bitcoin, the entire cryptocurrency market has ushered in a recovery, and major cryptocurrencies have returned to their blood. Subsequently, on May 11 and May 13, Bitcoin rose 13% and 12%, respectively, breaking through the US $ 7,000 and US $ 8,000 thresholds, and on May 26, it rose another 8% to approach US $ 9,000.
So far no one doubts whether the bull market has arrived and the market sentiment is extremely optimistic. Analysts believe that the cryptocurrency market at this time has become more mature than two years ago. Although there may be a certain degree of callback, there is no doubt about creating new historical highs.
Fundamentals such as technical indicators of the Bitcoin blockchain network have also given investors confidence. The advent of the flood season has allowed more miners to invest in mining. The entire network's computing power has hit record highs in succession. On transaction volume and so on.
The global macroeconomic situation is also an important factor driving the rise of the cryptocurrency market in the second quarter. International political crises such as the Brexit process, domestic turmoil in Venezuela and other countries, the Sino-US trade war, and the tense situation in the United States and Iran continue to affect global stock markets and related countries Fiat currency has an impact. As "irrelevant assets", Bitcoin and other crypto assets have become the first choice for some investors to invest in "hedged assets."
On June 18, Facebook announced Libra, pushing the market to an annual high
Throughout the second quarter, the cryptocurrency market was immersed in the joy of a bull market recovery, and social media giant Facebook announced the crypto project Libra, which has completely ignited investor enthusiasm. In the next 10 days, the price of Bitcoin climbed all the way, surpassing $ 10,000 and hitting an annual high of nearly $ 14,000.
But at the same time, we are seeing the opposite sentiment of the crypto market. Governments, central banks, and legislative and regulatory agencies from around the world have successively raised objections and questions to Libra. US lawmakers have asked Libra to stop development before resolving regulatory issues, and European finance ministers have stated that they want to keep Libra out.
Nonetheless, Facebook and Libra have not given up on their efforts to realize the vision of “financial inclusion” in the white paper. Facebook Blockchain Leader, Libra Head David Marcus, and Facebook CEO Mark Zuckerberg have participated in the hearings of the Senate and the House of Representatives. The Libra Association is established.
The head of the Libra Association said it still plans to launch Libra in June 2020. However, many central banks also said that global stablecoins such as Libra will threaten financial stability and monetary policy implementation, and there are risks in money laundering and anti-terrorist financing.
Regarding the cryptocurrency market, the industry believes that Facebook's crypto project, whether it is successful or not, will for the first time truly make global governments and regulators aware of the huge energy that may be contained in the crypto industry, and also make more public aware of cryptocurrencies. The presence.
If Facebook's Libra can be launched, it will become an important entry point for 2 billion users to access other cryptocurrencies such as Bitcoin, which will drive the explosion of the cryptocurrency market.
On September 23rd, Bakkt Bitcoin futures were launched, and the market volume was dismal, and the market fell.
The more people look forward to Libra, the more they expect the launch of Bakkt's physical settlement Bitcoin futures.
After Facebook's Libra successfully conducted a popular cryptocurrency science course for the general public, the market looks forward to the traditional investment institutions from Wall Street, which have tens of billions of billions of funds, to enter the crypto market.
Throughout the third quarter, the cryptocurrency market has been struggling near the $ 10,000 support level after hitting an annual high. Several attempts to make upward breakthroughs have failed, and the market desperately needs new explosive points to drive prices to continue to rise.
In this context, Bakkt, a crypto trading platform owned by Intercontinental Exchange, the parent company of the NYSE, launched monthly and daily bitcoin futures contracts settled on September 23.
However, its trading volume on the first day of launch was only 71 BTC. Although Bakkt believes that institutional investors still need time to adapt to this new asset class, the market responded quickly, falling $ 2,000 to $ 8,000 in a short time Nearby, and then sluggish, put an end to the bull market in 2019.
The industry believes that although regulated cryptocurrency derivatives trading products can attract institutional investors, the price of bitcoin in 2017 was basically a record high driven by individual investors.
However, despite the unfavorable start, Bakkt continued to launch Bitcoin crypto derivatives. Bitcoin options and cash-settled Bitcoin futures were launched in December. Its rival CME Group also plans to launch Bitcoin options in 2020.
When the funds from traditional investment institutions will arrive on a large scale, crypto investors are still waiting.
October 24, China's Supreme Leader Supports Blockchain
In the fourth quarter of 2019, China has always been the focus of the crypto industry.
China's central bank is ready to launch digital currency, and China's top leader also spoke to support the blockchain. No wonder Zuckerberg said at the hearing that if the United States continues to fail in crypto regulation, it may lag behind China.
The industry generally believes that if China finally successfully launches a centralized digital asset, it will force the United States to take action to respond. Especially when the Fed Chairman, the US Treasury Secretary, and others agree that there is no need to launch digital dollars now. China's central bank digital currency may even affect the status of the US dollar as the world's reserve currency. Once the dollar loses this position, "the United States will lose a lot."
In the context of the Sino-US trade war and technology war, China's attitude towards blockchain is particularly important. After a speech from China's top leader, the cryptocurrency market once rebounded strongly from around $ 7,000 to nearly $ 10,000, almost regaining the previous month's decline.
But what made cryptocurrency investors unexpected was that along with the Chinese government's vigorous investment in the blockchain field, it was a severe blow to cryptocurrency and virtual currency transactions. During the last two months of 2019, some entities engaged in cryptocurrency transactions in China were strictly investigated, and Sun Yuchen and He Yi's Weibo accounts were repeatedly blocked.
As entities with a Chinese background occupy an increasingly important position in the crypto field, the Chinese government's attitude towards blockchain and cryptocurrencies will also have a huge influence on the crypto market. Will China ’s central bank digital currency be launched in 2020? Will China lift the ban on cryptocurrencies? We will wait and see.
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Author Liang CHE
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