Bitcoin prices rose sharply as the bottom of the price was confirmed. Soaring has naturally ignited speculative sentiment, and many crypt analysts have begun to think about the commonalities between this upswing and the 2017 bull market and the changes since then, and this rise may lead to a larger bull market.
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Key factors driving the new bull market to reach new heights
When Bitcoin entered the public eye in 2017, most people knew nothing about this invention. What everyone saw was that Bitcoin rose nearly 10,000 U.S. dollars in a month, and the heart began to move around and got on the bus when the bubble reached its peak.
The world is impermanent, and no one can think of it. The bear market’s “strong and fierce” is not a bad one.
However, in recent weeks, the bitcoin market has turned around, and the price of the currency has been parabolic. It has soared from $4,200 to more than $8,000 in less than six weeks.
Most analysts expect that the next bull market will exceed the 2016-2017 increase, of course, they give many reasons:
"The key difference between now and 2017 is that people already know that Bitcoin has the potential to rush to $20,000.
— Bitcoin Birch (@BitcoinBirch) May 14, 2019”
Why is the next bull market going to be more intense because people know that Bitcoin has reached about $20,000. The public out of the pursuit of wealth, fear of missing this round of panic, may be a lot of coins.
"There are not these things in the last round of bull market:
– Cash App
– TD Ameritrade
Imagine what this bull market would look like.
— Dan Hedl (@danheld) May 15, 2019”
Another reason is that investors (even institutions) have multiple options to enter the encryption market at any time. With the launch of Bakkt, the launch of Fidelity and more, Bitcoin is easier to invest than the previous round. In addition, the impact of Square's cash application on Bitcoin supply should not be underestimated.
“The main financial markets have plummeted due to escalating trade tensions. The prospects for Bitcoin are getting better and better.
— Steven Russolillo (@srussolillo) May 14, 2019”
Although encryption technology has encountered a major economic crisis, its original intention is to play a similar gold hedge during the economic downturn. As the trade tension between China and the United States escalates and “main financial markets” collapse, bitcoin is becoming more attractive.
In times of economic turmoil, the value of Bitcoin as an unrelated asset has made it shine. The fact that Bitcoin and other cryptocurrencies do not follow other markets will make them ideal for diversifying portfolios.
“Large retailers, including Starbucks, Amazon, Whole Foods Supermarket, Barnes & Noble, and Crate and Barrel, began accepting cryptocurrencies.
— Mike Dudas (@mdudas) May 13, 2019”
The use of cryptocurrencies by some of the world's largest retailers may also help create additional sensational and use cases for cryptocurrencies and help bring valuable exposure to consumers.
"2017 is that we have not yet:
• Bakkt otw
• Samsung launched an encryption wallet
• HTC full-node work
• Greatly improved universal cryptocurrency UI
• A lot of publicity and education is changing
— The Crypto Dog(@TheCryptoDog) May 14, 2019”
Technology companies such as Samsung have begun to introduce cryptocurrency-specific features on their smartphones, and technology entrepreneurs such as Elon Musk and Jack Dorsey also support cryptocurrencies. The technology and asset classes add to the much-needed recognition. With millions of Samsung phones in the hands of the public, cryptocurrencies will be significantly reflected in the daily lives of the general public. Coinstar is another good example.
It is these reasons and more reasons that combine to make this surge not the same. Is the encryption market ready to come back?
Remarks: Bitcoin86 manuscript article, please indicate the source. The article is an independent view of the author and does not represent the standing position.