The price of bitcoin has risen sharply in the past few weeks-the price of bitcoin has increased by 40% since the beginning of the year, which is startling.
Just two months ago, the price of Bitcoin was less than $ 7,000, but this week has soared to more than $ 10,000. Many expect the value of the Bitcoin and cryptocurrency markets to continue to rise.
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The most recent surge in bitcoin price was about two years ago. The price of bitcoin soared to nearly $ 20,000 in December 2017. When bitcoin and cryptocurrencies swept the world, the price of bitcoin in early 2017 was less than 1,000 US dollar-but data shows that this time the rise is very different.
Data from Bitcoin and cryptanalysis company Glassnode revealed that in the past six months, deposits on Bitcoin exchanges have fallen sharply, indicating that the latest round of Bitcoin's rally has not been driven by retail investors.
Glassnode tweeted: "During the rise last summer, we saw a peak of more than 60,000 daily deposits, which may be the result of investor profit." The company also added that the bitcoin price The decline may be because long-term investors "have less incentive to sell Bitcoin."
"Since then (the deposits on Bitcoin exchanges) have decreased by almost 60% to 25,000 transactions."
When the bitcoin price reached a new high in 2017, the number of funds deposited by the bitcoin exchange exceeded the bitcoin price, and the daily exchange recharge recorded by Glassnode was about 20.
Earlier, deposits on Bitcoin exchanges increased with the rise in the price of Bitcoin, and declined during the bear market.
(Glassnode: Status of Funds Deposited on Bitcoin Exchange)
However, despite rising bitcoin prices, deposited funds continued to decline this year, leading many bitcoin and cryptocurrency traders and investors to attribute the latest round of bull market to the long-awaited institutional investors buying bitcoin .
Willy Woo, a partner at Adaptive Capital, a Bitcoin and cryptocurrency hedge fund, said:
"This is a real breakthrough. Fundamental investment activities are supporting this $ 10,000 breakthrough."
This theory is supported by the latest data from Grayscale, the world's largest Bitcoin and cryptocurrency asset management company.
Last month, Grayscale revealed that the inflow of funds in 2019 was $ 600 million, more than the total from 2013 to 2018, and announced that institutional funds finally entered the cryptocurrency field.
Grayscale general manager Michael Sonnenshein said:
"If the question always has been, 'Where are institutional investors in cryptocurrencies?' The answer is that they are here and of a certain size."
At the same time, some expect the upcoming Bitcoin halving event to spark another wave of retail interest in Bitcoin and crypto. In May of this year, Bitcoin mining rewards received by miners will be halved.
Google search for "bitcoin halving" as bitcoin price steadily rises, analysts at Arcane Research have found that the rising search trend may be a signal that halving bitcoin will allow cryptocurrencies and bitcoin to regain their publicity Interest, thus boosting bitcoin prices like 2017.