More than a week has passed since Bitcoin first reached $11,000. Although there have been several small drops at this level, the world’s largest cryptocurrency has hovered around this level most of the time.
Last month, when Bitcoin’s digital assets broke the $10,000 mark, this was a crucial moment for Bitcoin, and it attracted a lot of attention from mainstream media.
Analyst pointed out that most mainstream media have ignored the biggest progress in this area, such as the recent announcements by MasterCard and Visa, and PayPal. And Revolut may soon open up services related to encryption.
But what the media will not miss is the price. “When Bitcoin starts to go crazy, people will first notice its price,” daily newsletter Quantum Economics.
“The longer we maintain current levels or increase further,” the media will pay more attention to and report on Bitcoin and cryptocurrencies, “because they perform significantly better than all other asset classes.”
Until the last week of July, stocks, bonds and commodities were still experiencing their biggest gains in four months in decades, but Bitcoin has only recently joined them. However, small and medium cryptocurrencies, especially DeFi tokens, have rebounded strongly.
This is due to the crazy money printing by the Federal Reserve during the pandemic. The Federal Reserve has issued trillions of dollars to support various markets in the United States. All this printing caused government bond yields to fall to record levels and the U.S. dollar fell to a two-year low, forcing investors to invest elsewhere.
In the past four months, after the sell-off in March, the S&P 500 has risen 27% and the price of gold has risen 34%. But these gains pale in comparison to Bitcoin, which has risen 196% since its March low. Even year-to-date, Bitcoin has risen by 53%.
“The Wall Street Journal” wrote: “Bitcoin’s volatility and huge earnings potential make it more attractive to some investors, and funds from traditional markets are flowing into cryptocurrencies.” The newspaper this week Reported on Bitcoin’s massive move.
The Wall Street Journal not only noticed how speculators intervened in the central bank, interest rates fell, the dollar fell, and 57% of the US$900 million Grayscale Investments investment in the second quarter came from new investors who bet on Bitcoin Prices will continue to rise, and the Wall Street Journal also discussed DeFi-”an emerging trend in the cryptocurrency industry itself.”
The report also stated that the DeFi market has further provided traders with “more ammunition to increase leverage to conduct increasingly risky and potentially profitable option betting and arbitrage transactions on a series of cryptocurrencies. “
However, considering that the daily transaction volume of the Bitcoin block chain has not exceeded 350,000, it is still doubtful whether new investors will enter the field. Beatrice O’Carroll, the co-founder of Reciprocity Trading, a small over-the-counter trading company, said: “With such a group of newcomers, I have nothing to make a fuss about.” But once Bitcoin rises. To new highs, a large influx of new investors is expected.
“Now that it breaks through $10,000, there is actually no resistance until the all-time high of $20,000, which is completely imaginable year-end goal,” Greenspan said.
One Expert also wrote on Twitter: “If the dollar continues to depreciate, it is very likely that Bitcoin will continue to appreciate.”