In the last few days, Bitcoin can be said to have completely exploded, hitting a high of 13,200, and the price stretched sharply, rising by more than 2,000 points in just one week.
Moreover, according to the current form of rising, if there is no sudden negative, then it is very likely that Bitcoin will develop in a good direction for a period of time in the future, and it is very likely that it will directly lead a wave of currency circles without seeing it for a long time. Bull market storm.
It is important to figure out what causes every big rise in Bitcoin, otherwise, you are being cut leek.
The rise and fall of everything has its own internal development laws, and only after you figure it out will you have a clear understanding. Only in the next wave of ups and downs can we make good investment opportunities.
1. Institutional admission
The rise of BTC has its inevitable factors, but it also carries great accidental factors. Judging from the current development, the reasons for institutional entry are far greater than investment.
Since 2020, the global economy has been facing tremendous pressure, especially due to the impact of the epidemic. The economies of all countries have experienced declines to varying degrees. Many companies have begun to seek safe havens. Compared with traditional gold safe havens, Bitcoin is The new force, with its unique advantages and development history, has gradually been listed as one of the safe-haven assets by everyone. In addition, in recent years, the rapid development of the blockchain has made people more and more recognized with digital currencies. It is logical for some institutions to choose Bitcoin to avoid risk, but it does not mean that they agree with Bitcoin and invest for a long time. Of course, perhaps fund institutions such as Grayscale and Coinshare are more optimistic about the future development of Bitcoin.
2. Global release of water
Affected by the international environment, the U.S. dollar continued to depreciate, which affected the continued decline in the price of USDT and passively promoted the increase in the price of Bitcoin.
In the increasingly serious situation of the “freezing card tide”, the market is focusing on over-the-counter OTC withdrawal users. However, the USDT premium continues to fall. Under the condition of unreasonable withdrawals, it will trigger a crisis of trust in the stable currency in the market, which will cause many users to convert the stable currency they originally planned to hold for a long time into relatively stable mainstream BTC coins .
The final result is the market’s selling pressure on USDT is getting more and more serious, which naturally forces Bitcoin to rise!
3. Halving is good
On May 12, 2020, Bitcoin successfully completed the third halving moment in history.
Generally speaking, based on the historical performance of Bitcoin, Bitcoin may slowly begin to highlight the halving effect in the second quarter after the halving. As of now, Bitcoin has been halved in half a year or so. Under the circumstance of decreasing production and increasing demand, Bitcoin price increase is definitely the inevitable choice of the market.
There are currently two main ways to obtain Bitcoin. The first is to purchase directly, and the second is to obtain it through mining. Compared to direct purchase, the cost and risk of mining are relatively low, because it is direct. Get the latest clean Bitcoin from the source. For details on mining, please see the next breakdown.
The development of things has its own rules. We are the big brothers if we judge well, and we are the little leeks to be slaughtered if we don’t judge well. I hope everyone can invest in Bitcoin.