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The price of BTC has exceeded 170,000, and it has reached a new high

The recent performance of BTC is really gratifying. It keeps setting new historical highs. After breaking through the new highs of the previous bull market, it has risen by 30%. The volume of Bitcoin is already so large, and the upward trend can be so Well, it can be seen that there has been a steady stream of funds entering the market behind it.

The reason why BTC continues to rise is that the main reason is that institutional funds are continuously buying. As Fei Zhai said, Bitcoin has been de-retailed. Due to the continuous addition of institutional funds, compared with the previous market dominated by retail investors In other words, the market will also be more rational and calm.

After institutions enter the market, the price fluctuations of BTC may not be as crazy as before, but the market performance is more of a slow rise. Such market characteristics will also affect our investment strategy. Fei Zhai said that the current market is more suitable for the strategy of buying on dips.

One of the main differences between this wave of Bitcoin market and the bull market in previous years is the market structure, that is, the structure of holders. In the past few years, this market was still a very small and geek market. The number of Bitcoin holders is very small, but as BTC continues to skyrocket, more and more people are beginning to understand and enter the market."Skyrocketing is the best advertisement. With the skyrocketing of Bitcoin, many people have changed their views on BTC, and fewer and fewer people say it is a scam. Even some bigwigs who are not optimistic about BTC have also begun to change He has expressed his views on BTC, such as the boss of Bridgewater Fund. Not only is Bitcoin not like some so-called"expert

Crash as they say, and keep going up.

2020 is also an important year for Bitcoin. Not only has it broken through the previous high, but many institutional investors have begun to enter the market. Some listed companies have begun to allocate part of their funds to allocate Bitcoin, even insurance and pension-level funds. Funds have also begun to allocate Bitcoin. Compared with retail investors, these institutional investors will take longer. For example, some insurance and pension funds are long-term investors.

In addition to some institutions that are buying bitcoin on the surface, there must be many undisclosed institutions that are buying it, even some rich people and celebrities are also buying it, but it is not made public for some privacy reasons. As the starling said, this kind of energy has never appeared in the currency circle in the past, and the amount of funds is crushing.

The continuous entry of institutional funds will push up and support the bottom price of Bitcoin.

In Mynah's view, there is no reason for the general rise of thousands of coins. Institutions continue to enter the market, but most of the institutions are buying BTC, and some altcoins may be hit by the SEC. The deposits and withdrawals are not smooth, and many retail investors who speculate in copycats are buried and lose motivation, so at least for now, the skyrocketing situation of thousands of coins is still not visible.

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Fund rotation and hotspot switching are inevitable

Bitcoin is skyrocketing like this, do other coins still have a chance?

Since BTC is so skyrocketing, everyone should just buy BTC. In fact, although BTC is so skyrocketing now, it has not always been rising. Looking back at the market in August and September this year, DEFI coins kept rising. It has skyrocketed, and there have even appeared several DEFI coins that have increased dozens of times, and hundreds of times more coins have appeared. At that time, BTC was basically unchanged, and some BTC holders even sold BTC and exchanged them for ETH-based tokens. to mine.

It was only after the popularity of DEFI slowly dropped that BTC began to rise wildly. As Wan Hui said, fund rotation and hotspot switching are bound to happen. It's just that BTC has a steady stream of large off-market funds that are raising the lower limit. Unlike BTC, altcoins ebb and flow on-site fund rotation.

Therefore, in addition to BTC, other currencies also have opportunities. It’s just that for most ordinary investors, BTC investment is more obvious, and altcoins are more difficult to grasp. Think about how many speculative coins are around during the big DEFI market this year. If your friends make a lot of money, you will know. It's not easy to control, it depends more on luck.

Aunt Wan also summed up several problems with the group of chives who fry copycats:

1) The memory is only three seconds, and often only remember a few big positive lines in the cottage, but forget the long negative decline.

Take a look at the market in 2018 and 2019. Most of the altcoins have plummeted by about 90%, and some have even returned to zero. Of course, these altcoins also have bright moments.

2) Most of the leeks left the market at a loss and became the silent majority, leaving behind the darlings of the survivors, causing the newcomers to think that they can also become the darlings by relying on copycats.

In the process of speculating in coins, we must pay more attention to survivor bias. The silent majority is the group that we are most likely to ignore.

3) Do not look at statistics and do not believe in mathematics, your cottage has never been the chosen one.