The market value of Bitcoin has exceeded the trillion mark, and the Berlin hard fork of Ethereum is not so optimistic
On the eleventh day of the Lunar New Year of the Ox, most of my friends must have started work for a few days, and I have not met with you for nearly a month. Because the market is relatively clear, there is no need to analyze the market, just follow the general direction, whether it is a contract or a spot, you can make money with your eyes closed, so there is no need to read the article. That's why I didn't start to meet you until now. First of all, I would like to say Happy New Year to everyone! Let's start our article today.
The trillion-dollar market capitalization club welcomed a new member yesterday: Bitcoin. Today, the total value of bitcoin transactions exceeds $1 trillion.
The price of bitcoin hit a new all-time high on Friday. One bitcoin is currently worth about $55,000, up more than 6 percent on a daily basis, according to data from Coinbase. The price of Bitcoin has risen by about 360% over the past six months. There are currently about 18.6 million bitcoins in circulation around the world. (The total number of bitcoins is capped at 21 million.)
Comparing Bitcoin to a large company with a high valuation such as Apple is not the same type of comparison. But in terms of value, there are currently only four companies in the U.S. that are worth more than Bitcoin: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Google owner Alphabet (GOOGL).
Even after the price of Bitcoin continued to break through its all-time highs, Ethereum seemed not to be outdone. On February 20, 2021, as the second largest cryptocurrency in the world by market value, the price of ETH broke through 2,000 USDT, hitting a record high and increasing by 168% since the beginning of the year.
In fact, the rise of Ethereum this time is mainly driven by two factors.
First, institutional investors and retail investors have surged in Bitcoin investment, and more and more people have begun to understand cryptocurrencies and have great interest in investing in cryptocurrencies. Since the beginning of the year, the bitcoin price has soared from $32,000 to over $57,000.
Second, decentralized finance (DeFi) is booming, and many DeFi projects are running on the Ethereum blockchain. In the past few years, the market has been looking for a "killer app", and now DeFi is the best answer. Decentralized financial services allow people to borrow money, accumulate interest, and exchange assets without going through a financial institution. According to DeFi Pulse data, there are currently more than 70 Ethereum-based DeFi applications, and the total lock-up value of these applications has exceeded 42 billion US dollars. In addition, among the top 50 Ethereum-based projects, only two non-stablecoin projects have suffered losses (ERC-20 HEX and Compound Dai), while the others have shown an upward trend, and 34 projects have seen price increases of more than one times.
When the bull market will peak is the focus of everyone's attention.
As far as my personal experience is concerned, in addition to using some public data for analysis, sometimes I have to rely on some personal feelings and experiences. This feeling and experience may not be rational to some extent. Slowly build up after setbacks and workouts.
Presumably everyone has a feeling, that is, they feel that retail investors around them have begun to rush into the market. Is this a newcomer running into the market? To judge this phenomenon, we must first think about whether these newcomers we have come into contact with are typical and representative?
As the bull market moves forward, newcomers will continue to enter the market along the way. Some are early and some are late. Those who enter the market early are the foresight, while those who enter the market late are the last to take over. Therefore, we have to use late entrants to judge whether the bull market has reached its peak.
So are the newcomers we saw entering the stadium early or late?
In my personal experience, there are three types of people:
1. People who are least likely to have time to pay attention to this kind of information.
2. People who are the least likely to be exposed to new things.
3. People who basically have no channels to receive new information.
So who are these three types of people?
Professionals working in high-end office buildings belong to the first category, because most of them are usually very busy and work overtime, and basically have no time to care about these things. 996 has exhausted them.
People who are old and don’t pay attention to new things at all belong to the second category. They may not care about the essence of things, but are interested in direct benefits. cared.
People who are completely insulated from information and have little connection with modern life belong to the third category. Their industries and daily life hardly have many channels to receive new information.
When these three types of people start to pay attention, it is enough to show that the heat has spread to all aspects of society, and the "money-making effect" of investment products has become an "iron-like" fact. At this time, no matter how ridiculous the new thing is, even if I have never heard of this new thing before, these are all unimportant. Just based on the fact that "it will definitely make money", the last group of people will rush in.
At this time, the top of the market is not far away.
What I want to emphasize here is that it is not to say that every time the climax of the digital currency bull market, all these three types of people will come in (in fact, this is impossible), or only these three types of people will come in, but that we must Pay special attention to those in society who are least impressed.
When they all start to pay attention to this market and enter this market, the last bit of heat left in the market will be squeezed out, and the bull market is almost close to the craziest.
You may wish to consider the phenomena mentioned above to see if you have reached the turning point of history. The purpose of this article is to explain the current situation rather than the usual investment advice, specific market and currency point recommendations and suggestions Let's go into details in the next article.
