From "revolution" and "crash" to "sports", the industry has seen the bitcoin magic for half a year.

Without a little precaution, Bitcoin opened the bull market.

Since entering May, Bitcoin has continued to break through, and on May 28 it reached a new high of $8,903.

In the previous year, the cryptocurrency has been shrouded in the cold winter, and the blockchain industry has also fallen from the wind. The bitcoin fell as big companies layoffs, mines closed down, and practitioners switched… Bitcoin was also Labels for "crash" and "MLM" appear in the microblogging search and network segment.

From the lows of late 2018 to the bull market today, the bitcoin and cryptocurrency industries have spent the magical half year.

[Deep chain original]

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Breaking through $8,900, creating a new high in 2019

 

On May 28th, Bitcoin climbed another new high of $8,903 (about RMB 61,000) since 2019.

According to data from the Global Trade Station, at 0:35 on May 28, Bitcoin broke through $8,900 and rose more than $1,000 in 24 hours, an increase of more than 12%. CoinMarketCap's data shows that Bitcoin's total transaction volume on May 27 increased by more than $1.2 billion compared to May 26.

In fact, since April 30, Bitcoin has started a rising market, rising from more than 5,000 US dollars, and continuously broke through the 6000, 7000, and 8000 US dollars in less than a month, and once approached 9,000 US dollars.

Driven by the rising bitcoin market, other mainstream currencies have also risen to varying degrees, and EOS has broken through $8, creating a new high since 2019.

At present, the total market capitalization of cryptocurrency has exceeded 273 billion US dollars, becoming the highest level since August 2018, while the market capitalization of Bitcoin has reached 154 billion US dollars, accounting for 56% of the global market value of cryptocurrency, exceeding other currencies. The sum of the species.

“Historical Bitcoin usually goes through a year of big market in 10 days. If you miss this 10 days, the average yield is minus 25%.” Some investors sighed for the rapid rise of Bitcoin.

Behind this sentence is the regretant sprinter, the air force that was smashed, and the analyst who was "faced" by reality.

"Why didn't I buy Bitcoin when it was more than 3,000 US dollars?" Many investors were both excited and regretted after Bitcoin rose. In the process of rising Bitcoin all the way, many analysts fell into the situation of predicting failure and frequent face–"5900 is the highest, opening the air", "6000 is the highest, opening the air", "6500 is the highest, opening the air" ……

If the sprinters and analysts only regret and swear, the Bitcoin Air Force is suffering from blood. According to media reports, within a week, the amount of the Bitcoin Air Force in OKEx and Bitmex exceeded RMB 4 billion.

However, the rise in Bitcoin has allowed the accumulated market sentiment to be released, and more and more funds are beginning to recover and enter the currency market.

As of May 27, the number of Bitcoin active addresses was 772,900, an increase of 7.99% from the previous week, and the number of transactions on the chain was 367,200, an increase of 1.82% from last week.

From "revolution" to "crash"

On December 17, 2017, Bitcoin reached an all-time high of $19,142 (approximately RMB 128,000).

Driven by the wealth effect, Bitcoin and the blockchain technology behind it have entered the public eye, and the blockchain has become a new cusp.

In the slogan of “blockchain revolution” and “embrace blockchain”, investors, entrepreneurs and scammers have poured into the blockchain and cryptocurrency industries.

However, after Bitcoin reached its peak, it began to decline, from more than 10,000 US dollars to more than 6,000 US dollars, the bear market is coming. After entering November, there was a continuous plunge. In just 10 days, it fell from 6,000 US dollars to more than 3,000 US dollars, a drop of more than 44%.

On December 16, Bitcoin fell to its lowest point since 2018, $3,155, a drop of more than 80% from the highest of $19,142.

The decline in Bitcoin has pushed down the dominoes in the field of cryptocurrency. For the cryptocurrency market, other mainstream currencies have also fallen with Bitcoin. As the second largest currency in the market, Ethereum, the lowest price fell to more than 80 US dollars. More than 1400 US dollars higher than the high point, a drop of more than 94%.

From the perspective of the entire industry, mining machine manufacturers, mines, encryption funds, blockchain companies, investors, etc. are all seriously affected by the market.

Under the continually lower market, large mines in Sichuan, Xinjiang, Inner Mongolia and other places have been shut down, and small mines have closed down.

In the prospectus of Bitu mainland, the world's largest miner's chip maker, it is clear that due to a miscalculation of the 2018 market, Bitian's mining machine has experienced a serious inventory backlog. In December 2018, Bitland made a large layoff of thousands of people.

For crypto funds, some insiders told Deep Chain Finance that after June 2018, most cryptocurrency funds began to stop investing abroad. Even the bitcoin "the richest man" Li Xiaolai said on Weibo in September that he would not invest any more projects in the future.

In addition, the bitcoin “crash” and the blockchain enthusiasm have caused the blockchain companies established in early 2018 to close down, and the high-profile entry of the squad has “retired” and the practitioners have been forced to change careers.

For the investors in the secondary market, the most intuitive feeling of the bear market is that the digital assets in the hands have shrunk dramatically. "No matter how I operate, 2018 is definitely going to lose money." Some investors told the deep chain finance.

"In 2017, the money earned by luck, in 2018, relied on the strength to go back." This joke became the most authentic portrayal of the cryptocurrency field.

Bitcoin

Just when everyone thought that the bear market was over, the bitcoin had a reversal, which led to changes in the market.

Bitcoin’s “coming momentum” was confusing and unprepared, so that the founder of Changan Zhao Changpeng and the founder of the wave field, Sun Yuchen, all said “I don’t know why”.

However, the rise in bitcoin is not without a clue. In the eyes of the industry, the entry of Internet giants and traditional institutions, asset hedging needs, halving bitcoin, and market sentiment are all driving factors.

In February 2019, Wall Street financial giant JP Morgan Chase announced that it would issue stable currency to solve the problem of cross-border settlement. Since March 2019, there has been more and more news from social giants Facebook to issue coins, and its stable currency project has become a matter of course.

In addition, there is also news that TD Ameritrade, the second largest online brokerage company in the US, will provide encrypted transaction services to its 11 million retail customers; Fidelity Digital Assets, the world's largest asset management company, Fidelity Investment, will launch bitcoin transactions. Services; Bakkt, the cryptocurrency exchange of the parent company of the New York Stock Exchange, announced that it will launch a bitcoin futures contract that complies with federal regulations.

“With the efforts of well-known big companies like Fidelity Investments and Facebook, and regulators stepping up their efforts to reduce fraud, Bitcoin has become a reliable value store, just like gold.” Encrypted investment giant Galaxy Investment Founder and CEO, billionaire Michael Novogratz said.

In addition, recent tensions between China and the United States have made safe-haven assets popular, and Bitcoin has become one of the most important safe-haven options. The data shows that since May, Bitcoin has risen far more than the traditional safe-haven assets such as gold in the same period and 10-year US Treasury bonds.

In addition to external factors, Bitcoin will halve for the third time in 2020. Earlier, the first year after Bitcoin was halved, its price exceeded $1,000, and the year after the second halving opened the big bull market in 2017. As Bitcoin halved for the third time, its scarcity is more pronounced and its value will rise, and the market's expectation of halving bitcoin will, to some extent, drive up the price of the currency.

As bitcoin rose, the FOMO effect associated with trading psychology (the “fear of missing” effect) also began to work.

Fundstrat co-founder Tom Lee has launched a survey on Twitter that "BTC will have a FOMO (fear of missing) effect at the price", attracting 7763 participants. According to the survey data, 32% believe that when the BTC exceeds 20,000 US dollars (new high); 45% think that when the BTC reaches 10,000 US dollars; 23% think it is now.

In the process of continued rise in Bitcoin, many investors will choose to “catch up” due to fear of missing, which further boosts the price of Bitcoin.

 

The bull market is coming, chasing bitcoin?

"I heard that Bitcoin has risen very badly recently. Can you buy some?"

In the case of bitcoin rising and boarding on Weibo, cryptocurrency investors have regrouped into the market, and even many people who have never touched Bitcoin have begun to inquire, and they are eager to try.

"Undoubtedly, it is the early stage of the bull market." Hong Yining, the dean of the original Jinqiu Block Chain Research Institute and a well-known blockchain expert, told Shen Chain Finance.

"From the perspective of price movements, it has risen fast and has fallen, and each round of rises has reached a new high. The decline is limited, indicating that the increase is driven by new funds. The bottom of the bitcoin price has been in the past six months, and the resistance level of $6,500. Being easily broken, this is a sign of a bull market. From the perspective of asset allocation, the pessimistic expectation of the global economic situation has led many wealthy people to choose bitcoin in asset allocation."

However, there are also people in the industry who disagree with the "bull market has arrived."

In the view of Liu Chang, the founder of Zhimi University, the current market is in the stage of returning value, and in 2019 it should be a process of shock recovery.

“The recovery of market sentiment takes time. It takes time for the society to increase the degree of recognition and scale of cryptographic assets by an order of magnitude. Therefore, it is not appropriate to be overly optimistic to expect the bull market to reappear in 2019. Excessive optimism is easy to encounter the huge chasing and leverage. investment risk."

Although cryptocurrency is gaining momentum, many countries, including China, still have a pessimistic attitude toward cryptocurrencies, and many cryptocurrency institutions have not obtained legal status.

On May 28, the media reported that the South Korean government held a meeting to discuss the recent movements of the virtual currency market. The Financial Committee issued an official announcement stating that virtual currency is not a legal currency, and no one can preserve it. For fraudulent pyramid schemes and other illegal acts, The government will impose strict controls through the financial authorities.

In addition, for the crazy rise of Bitcoin, there is also news that there is behavior behind the market. Analysts said that there have been nine large transactions in the Bitcoin network recently, with more than 27,029 bitcoins (worth about $236 million), of which 1,500 bitcoins have flowed into the trading platform Bitfinex. These transactions may be Manipulating the bitcoin market.

"Do not rush to invest, invest in the field you are familiar with", Bitcoin's determined singer – Buffett nickname.

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