Bitcoin fell from 40,000 points, how will the market outlook go?
soared.
Bitcoin, the largest cryptocurrency by market value, broke through $41,000 on Friday and hit a record high again. Financial insiders believe that institutions and retail investors have jointly promoted the rally in the encryption market.
In the past year, institutional investors such as Morgan Stanley have become more enthusiastic about encrypted assets. Many have attributed Bitcoin's bull market to the rise of institutional investors, compared to retail investors who were caught off guard as Bitcoin rose to a sky-high $40,000.
According to some analysts, the surge in Bitcoin in the past year has been driven by many factors, including the entry of institutional investors, loose policies of global central banks, the limited number of Bitcoins, and the market frenzy after breaking through $20,000 are all "behind the scenes."
plummeted.
The surge of Bitcoin is inseparable from the fuel of many retail investors. The fear of missing out has caused many investors to run into the market, but at the same time it is also likely to trigger a sharp correction in the future. For speculators, the skyrocketing Bitcoin can be both heaven and is hell.
No, everything is really possible, you never know whether it will continue to rise or fall back.
Within a few days, Bitcoin fell sharply from 4 p.m.
After falling below US$40,000 in the early morning of January 9, the price of Bitcoin fell by more than 12% in the early morning of January 11, reaching a minimum of US$33,447, which is equivalent to a sharp drop of nearly US$6,000 in one day.
From the perspective of the external environment, this surge of Bitcoin is mainly related to the global risk aversion sentiment; from the perspective of internal development, the surge of Bitcoin this time is different from the previous bubble period.
Many observers warn that this type of debt cannot be sustained—once a crisis strikes, “money printing operations” such as quantitative easing will reappear, and the currency credit of the US dollar will inevitably decline or even be overdrawn. This exacerbated global investors' concerns about the credit of the US dollar, and the US dollar and US dollar assets also fell to their lowest levels in recent years.
However, some investors warned that the current active Bitcoin account is close to the highest level in history at the end of 2017, which is likely to be a signal for some investors to sell. Investors should be wary of the speculative risks in the Bitcoin market.
Some experts warned investors that the sharp rise and fall of bitcoin prices has spawned a large number of trading websites, and the risks of these platforms cannot be underestimated. , Tens of billions of client funds lack third-party supervision, and the hidden danger of running away cannot be ignored.”
From a mid-three-year low of $4,748 (£3,490), the daily average for the broader market in mid-March, Bitcoin rose to below $30,000 by the end of the year.
That wasn't the case during the last bull run in 2017, when the bitcoin price rose about 20-fold to nearly $20,000, only to fall back to a low of $3,000 a year later.
The introduction of financial products such as bitcoin futures and options, as well as blockchain-related funds, has allowed investors who would otherwise be wary of volatility to step in. Bitcoin futures mean investors can also speculate on falling prices by "shorting" the cryptocurrency.
How will the market outlook go?
Bitcoin frequently staged sharp rises and falls, and the bulls and shorts competed fiercely around the $40,000 mark. On the evening of the 10th, it staged a cliff-like plunge.
The January 2021 cryptocurrency outlook report released by the Bloomberg team pointed out that the current institutional bidding seems to be intensifying, and $50,000 is likely to be the next stop for Bitcoin.
There were frequent sharp rises and falls, and fierce competition between long and short positions around the $40,000 mark. On the evening of the 10th, a cliff-like plunge was staged, with several straight dives of nearly a thousand dollars, and several straight-line rises.
Not only that, Bitcoin is currently exiting the early adoption stage, because large institutions have begun to regard Bitcoin as a product for hedging risks in traditional markets, and consumers have begun to try to trade digital currencies in their daily lives.
But there are also data showing that the risk of falling may come at any time.
Many people believe that Bitcoin is still an unstable asset, and investing in it is still risky.
Responding to a tweet from Ben Mezrich, author of the book "Bitcoin Billionaires," Tesla and SpaceX CEO Elon Musk said he would not refuse to accept bitcoin payments.
Not long after, Musk, who hopes to realize a manned mission to Mars in just a few years, tweeted that the future Martian economy is likely to be based on cryptocurrencies such as Bitcoin.
After a three-year bear market, bitcoin prices began to rebound in October last year.
Currently, the total market capitalization of the cryptocurrency market has soared above $1 trillion.
Musk's comment immediately sparked a violent reaction in the cryptocurrency field. Zhao Changpeng, founder and CEO of cryptocurrency exchange Binance, responded to Musk on Twitter saying "good job."
What do you think?
What do you think?
