Why is this bull market different?

Is the cow coming? It is true that in March of this year, it has slowly entered the bull market. Now Bitcoin has exceeded 10,000, and the peak price of the last round of the bull market is less than double the distance. The last round of the bull market originated from the intelligent contract technology of Ethereum. Now that the blockchain technology has not made new breakthroughs again, will the new bull market of Bitcoin be stronger and more durable than the last bull market? The answer is Certainly, this round of bull market is different from the internal technological innovation of the last round of bull market. On the contrary, this round of bull market may be more likely to be detonated by external factors.

Institutional funding and infrastructure

The benefits of institutional funding entering the bitcoin market have been warming up for a long time and are now happening. The first thing that needs to be done is to build technology infrastructure and related services and related services so that institutional investors can easily put large amounts of money into Bitcoin and other cryptocurrencies.

Bakkt – Futures

The goodness of Bakkt, everyone is annoying, because the pigeons have been placed. However, this time the specific date was finally confirmed, which was July 22.

Bakkt is a Bitcoin futures project created by the New York Stock Exchange's parent company, the Intercontinental Exchange (ICE) . Bakkt has so far received $182.5 million in venture capital.

On December 31 last year, Bakkt CEO Kelly Loeffler wrote:

“I am very pleased to confirm that we have completed the first round of $182.5 million in financing, and investors, like us, have confidence in the future of digital assets.”

“Our focus today is on driving organizations to acquire digital assets, as well as merchants and consumers, and we are already expanding this vision and working with big companies like Starbucks.”

It is also worth noting that Bakkt CEO Kelly Loeffler married Jeff Sprecher, founder and CEO of Intercontinental Exchange and chairman of the New York Stock Exchange. The key is that the Intercontinental Exchange seems to be fully involved in the Bakkt project.

Why is the launch of Bakkt significant in this new bitcoin bull market?

Don't underestimate the benefits of Bakkt. Bakkt is different from the traditional currency exchange, which is a major attempt by traditional financial institutions to jointly enter the bitcoin market. The biggest problem in the cryptocurrency market today is that large-scale funds are difficult to access because the security of funds is not guaranteed. Bakkt is the main force to solve this problem. Bakkt doesn't have to say much about compliance. The most important thing is that it is the son of the New York Intercontinental Exchange (ICE), with its own plug-in.

In addition, Bakkt brought a firm delivery. At present, the bitcoin futures contracts we are familiar with do not actually participate in Bitcoin. And the real delivery, no matter how long you are short, you must use the real BTC when you deliver. For example, if you open an empty order at Bakkt, you will need to return the real Bitcoin to the platform at the time of delivery. Once you have a large number of short positions, you need to buy a lot from the market, which will inevitably lead to a rise in bitcoin prices.

1 million active bitcoin addresses

The daily active address is the most important basic indicator in Bitcoin. According to CoinMetrics.io, there are now more than 1 million BTC active addresses per day. Since the last bull market in November 2017, this activity has been Have not seen.

The daily active address is the most important data point in Bitcoin because it shows how many independent network participants are trading Bitcoin. It shows that the actual adoption rate of Bitcoin is growing, and it will break through the new high for the second time.

In addition, the launch of Libra, the Facebook stable currency project, has brought billions of users access to cryptocurrencies. Some of them will be interested in real decentralized cryptocurrencies and become fans of Bitcoin. Not high, but for Facebook's billions of users, the number of users in a small proportion is also amazing.

International trade issues

At present, Sino-US trade frictions are getting worse. When the two sides oppose each other, the financial market immediately falls, the market risk aversion rises sharply, and the safe-haven assets collectively rise. Gold, silver, bonds and even bitcoin are highly sought after. Due to trade issues, everyone is not optimistic about the prospects of the economic and financial markets, coupled with exchange rate fluctuations, investors will see the continued rise in bitcoin, then it will attract some investors to enter the currency circle to find opportunities. Another point of view is that due to the influence of the environment, some people want to take out the funds, and Bitcoin can act as a media tool.

to sum up

The factors that trigger the next bull market may be more external factors. The only important internal factor is to halve. According to past historical data, the bull market started half a year to a year and a half ago. Obviously we have long been In this time phase.

In terms of external factors, the currency circle has begun to enter the institutional era. These institutions bring compliance, huge amounts of money, and are more professional. The daily active address is also breaking new heights, plus Facebook's entry, the number of users of cryptocurrencies will increase. International trade issues have also made Bitcoin a safe haven for many investors.

In short, the bull market can be expected, and it is far beyond the bull market in the last round of bull market.

Compilation: Xiaoyan

Source: Block wave