A single day plunged more than 10%! Bitcoin is being sold as a safe haven asset?

A single day plunged more than 10%! Bitcoin is being sold as a safe haven asset?

Although bitcoin rose sharply in the first half of this year, the increase was about 200%, but at the current price, Bitcoin still fell about 45% from the historical high at the end of 2017.

After Facebook announced that it will launch its own cryptocurrency, it boosted the optimism of the digital currency market, and Bitcoin’s gains last month also accelerated.

In the near future, after the crazy upswing, many voices in the currency circle that have been raised too fast have begun to appear.

Josh Rager, a popular cryptocurrency analyst on Twitter, said Bitcoin had a strong performance in June, but couldn't retreat to $9,500 in the next few weeks without regaining momentum.

Peter Brandt, an analyst who accurately predicted the recent rise in bitcoin, also pointed out that compared with the trend of the Nasdaq 100 index in 1999-2000, Bitcoin is currently forming a bearish pattern and causing various cryptocurrencies to fall.

The main cryptocurrency outside of Bitcoin, the overall performance in the first half of this year is not as bright as Bitcoin, highlighting the dominant position of Bitcoin at this stage. These currencies also fell with Bitcoin on Sunday, with a 24-hour drop of between 4-6%, but the difference between the 7th and 7th is significant. Ethereum fell 3% on the 7th, and Litecoin fell more than 8%. The rest of the currency The decline on the 7th was above 10%.

Has the weekend become a bitcoin big market window?

It is worth mentioning that bitcoin prices are now often out of the market on weekends. Data show that since the beginning of May this year, Bitcoin's weekend increase accounted for about 40% of the total increase this year. In fact, Bitcoin reached a historical peak of $19,666 on a weekend in December 2017.

Unlike most traditional exchange securities, cryptocurrencies are traded around the clock around the world. This is because digital assets run on a decentralized network supported by blockchain technology, and blockchain technology records all transactions, allowing encrypted investors to trade anywhere, anytime. David Tawil, president of cryptocurrency hedge fund ProChain Capital, said, "This is absolutely unique."

A single day plunged more than 10%! Bitcoin is being sold as a safe haven asset?

Just like other things about bitcoin, the theory of why the price of bitcoin will soar over the weekend is endless.

Tawil believes that part of the reason is due to the prediction of major statements. He said that bitcoin transactions and news will never stop, whether on weekends or not, but many big companies will wait until Monday to issue a major statement. “Merger Monday” is by no means a slam dunk. Records show that big companies are inclined to choose to release the acquisition report on the morning of the first day of the week.

Tawil said that the currency circle is the same, and it also tends to announce on Monday. However, Bitcoin has no trading time limit compared to securities trading such as stocks. Investors can trade ahead of the weekend by forecasting news. As a result, there is often a slight ups and downs, and the price of Bitcoin will fluctuate dramatically over the weekend.

Bitwise Asset Management CEO Hunter Horsley said that group myths may also be the reason for Bitcoin's weekend surge. Horsley said, "Overall, there are many retail investors in this market. I think those people have more free time to read the news of the week on weekends, chat with friends, and recommend the exciting excitement they hear in the week. thing."

Others believe that the chasing of the psychology has driven more investors to join the ranks of Bitcoin, which has led to a surge in bitcoin prices over the weekend. Take the weekend of June 22 as an example. Bitstamp's data shows that as of Friday, Bitcoin rose nearly 19% in the week and rose 10% on the weekend. Naeem Aslam, chief market analyst at Think Markets UK in London, said, “The rise in the weekend was mainly driven by opportunistic investors. These people follow the voices of others and are very worried about missed opportunities.” (Global Forex Network)