Bitcoin hit $12,000, and this crazy situation is reminiscent of 2017…

Investors who have not yet boarded the car, is this a great opportunity for the rich, or is it another feast for the leek?

When I woke up, Bitcoin went up again!

On the morning of June 26, the price of the coin showed that Bitcoin broke through $12,000, or 5.60%. Looking further, the last (2017) bitcoin rushed from $12,000 to the highest of $19,791, which took only 12 days.

Bitcoin gained market attention with a strong rise. At the end of March, bitcoin prices broke through the $4,000 mark that was stagnant for three months. Since then, the oscillatory upward trend has been maintained. By May 3, the price of bitcoin has soared to $6,000. On May 11, the price of bitcoin has returned to $7,000 after a lapse of seven months. At the end of May, it broke through $9,000 but quickly fell back.

But with the official launch of Facebook's cryptocurrency Libra official website on June 18, the market was followed, and the market was excited. Bitcoin prices stabilized above $9,000, and on June 22, after 15 months. Once again broke through the $10,000 mark. Bitcoin has risen 42% since June and has risen by 197% this quarter.

According to CoinMarketCap, 8 of the top 10 cryptocurrencies in the past 24 hours have risen. When the bitcoin surge in the recent period was accepted by the market, the next question is: What is the future trend of Bitcoin?

Singing more pies: investors are coming to the car

The bitcoin forecasting tool Mayer Multiple analyzed that from the current price trend, the bitcoin price will reach $21,000 at the end of the year.

In the interview, the president of the University of Fire Capital, Yu Jianing, firmly supported the rise of Bitcoin. He said that

First of all, digital assets are a mirror of the development of the digital economy. At present, the global digital economy is booming, and Bitcoin is the leader in digital assets. In the case of returning value, it has a leading effect;

Secondly, the Libra project initiated by Facebook has made people see the great potential and value of the blockchain in the field of payment and other fields;

The third global economy is highly uncertain, and the risk-avoiding factors have also led to the accelerated inflow of global funds into safe-haven assets such as gold and oil. Bitcoin is now one of the safe-haven assets due to its global circulation and scarcity. "The price of Bitcoin of $10,000 is a major psychological barrier for the encrypted digital currency market. After reaching over $10,000, I am still optimistic about the long-term trend of digital assets in the future, but there will be some in the process. The volatility is back, but the chances of a sharp rise in the second half of 2017 are relatively small, because more and more institutional investors are now entering the market, rather than being a market dominated by a global investment retailer. "Yu Jianing said.

The recent bitcoin carnival also reflects the risk aversion of investors in the unstable global financial system. Bitcoin and other cryptocurrencies provide a safe haven.

Investor Tom Luongo published an article on the Gold, Goats n' Guns website that mentions that in the financial derivatives pyramid (the pyramid of Exter), gold is at the bottom, meaning that gold is the most stable and risk-free asset. Correspondingly, Bitcoin is also at the bottom of the “pyramid” of the cryptocurrency version. It is the earliest and most trusted blockchain application. To this day, Bitcoin still accounts for 59% of the cryptocurrency market. .

Xiao Lei, an e-money researcher such as Bitcoin, said that the Fed’s easing of easing expectations and the risk aversion have warmed up. Investors’ concerns about future inflation expectations have led to increased market chasing of assets such as Bitcoin and gold. As the decentralized investment target, gold and bitcoin do not require any government credit endorsement. Therefore, the geopolitical situation such as the situation in Iran has intensified and some investors have begun to intervene in borderless assets, especially the bitcoin, which is still relatively anonymous, but only bit. The stability of the currency still requires a longer game.

Naeem Aslam, chief market analyst at Thinkmarkets, said in an interview with Fox News on the 24th that the situation in the Middle East is chaotic, and the downside risks to the global economy are intensifying. Once the “digital gold” bitcoin with safe-haven properties breaks through the historical peak of US$20,000, It is expected to continue to soar to the range of $60,000 to $100,000.

Sing the empty school: Don't worry, short positions are increasing

Take history as a guide. After a brief glory in early 2018, Bitcoin “falled into the altar” and prices continued to oscillate. In December, it fell below $4,000 and approached $3,000, a drop of more than 80%.

At the beginning of 2019, bitcoin prices remained sluggish. From January to February this year, bitcoin prices hovered around $3,500. It was not until March that the momentum began to rise.

In addition, the shortest recent moves are frequent. Bitcoin futures listed by the CME Group, the largest exchange operator in the US, reflect that hedge funds and other large traders bet that bitcoin will fall.

The CTFC report showed that hedge funds and money managers added 14% of bitcoin short positions in CME bitcoin futures contracts last week, while other large-scale traders held short positions in long positions of long positions. More than

According to OKEx data, as of 8:00 on the 26th, in the OKEx Bitcoin contract elite account, the average short position ratio of short positions exceeds 33%, and the short position ratio is close to twice the long position.

Peter Schiff, CEO of Euro Pacific Capital, publicly warned that Bitcoin prices will eventually fall, causing book profits to be erased. He bluntly said that unless sold, it doesn't matter how high the bitcoin price rises. Every buyer must eventually sell in order to benefit from the rise. But once those "firm holders" decide to cash, the price will plummet and the book proceeds will be erased before they are realized.

Author: Hu Chen

Source: Shallot blockchain

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