Forbes: Bitcoin's rebound this year is more sustainable than 2019

Forbes published an article on Thursday that Bitcoin, the highest-valued cryptocurrency, has rebounded more consistently this year than in the first half of 2019.

The report said that in the first half of 2019, the price of Bitcoin rose sharply, but then fell sharply in the second half of the year. In the first two months of 2020, the price of Bitcoin rose by 50%, and some investors worry that it will repeat the same mistakes as in 2019. However, cryptocurrency analyst Tone Vays said that the price trend of the crypto market this year looks different from last year.

Vays said, "I do see more interest from individual investors driving the current rise in bitcoin prices. Although the rate of increase is slightly slower, it is more orderly than the last time."

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For the crypto market in 2019, Vays believes that the rise in the first half and the plunge in the second half are related to the PlusToken Ponzi scheme. In addition, he believes that many investors will exchange their altcoins into bitcoin in 2019, which has promoted the rise in bitcoin prices and made Bitcoin's dominant position in the crypto market from around 50% at the beginning of last year It rose to around 70% at the end of the year.

Vays said that “funds transferred from altcoins are basically funds that have already entered the crypto market.” Therefore, the rebound of Bitcoin is not that new funds have entered this market. He explained, "If 10% or 15% of Ethereum is converted into Bitcoin, this will greatly increase the price of Bitcoin. Because the liquidity field of cryptocurrencies is very low."

Regarding the trend of the crypto market this year, Vays believes that "this year, we are closer to halving the Bitcoin block reward, so there is hype in the cryptocurrency field." Bitcoin block reward halving is expected to be in 2020 Monthly.

Blockchain analyst Willy Woo said that cryptocurrency derivatives trading has played a role in increasing the price of Bitcoin from $ 4,000 to $ 13,000 in 2019. According to Woo, "The rise in 2019 is extremely extreme and is being driven by derivatives trading on futures exchanges, as most individual traders are in short positions and it would be profitable to squeeze them out of trading. At that time Bit The price of the coin has soared, but it is not sustainable. "

Since 2017, derivatives trading has become more common. Several mainstream exchanges have also launched crypto derivatives trading platforms. Woo said that in contrast to 2019, Bitcoin's price trend this year has been different, as the price of Bitcoin has increased due to the increase in buyers. Woo mentioned, "There was an influx of investors at the bottom of $ 6,000 in 2020. Growth in 2020 is determined by long-term investor activity, which is organic demand, which is more sustainable."

According to the comparison data, Bitcoin is currently facing strong resistance above 10,000 US dollars, and has fallen back after breaking through 10,000 US dollars for two consecutive times in the recent period.

Image source: Pixabay

Author Xiu MU

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