In the industry, too many people regard Bitcoin as “digital gold”, and this year, Bitcoin did not disappoint the market and began to “go bull” again.
“The market of encrypted digital currency cannot be compared with the traditional capital market. The main characteristics of mainstream currency prices are rapid changes and fluctuations. Taking Bitcoin as an example, price fluctuations of hundreds of dollars a day are normal, but To see whether Bitcoin re-enters the bull market is also to see its trend. From June of this year, Bitcoin has been consolidating above $9,000, until now it has broken through the $10,000 and $11,000 mark in one fell swoop. In order to take the bull market. Looking at it for a long time, Bitcoin has more than doubled from its lowest point of $5,000 until now. Although it is still nearly double the gap from its highest point of $20,000.” In fact, the international gold price chart and Bitcoin price trend almost completely coincided, and even the time trend of the rise was almost the same.
On July 28, a commodity analyst analyzed that from the timeline of the past decades, the various complex factors affecting the world that have appeared in every major economic cycle will cause gold, The U.S. dollar and oil have become the three major safe-haven products, and international capital will swarm into these three areas, thereby pushing up gold prices, raising oil prices, and contributing to the U.S. dollar index.
“But this year, the situation has become very different. Gold is still the undisputed king, but the U.S. dollar has become eclipsed. Not to mention oil. There have been strange phenomena in which the price of stored oil is higher than the price of oil itself. On the contrary, it is encrypted digital currency, not only limited to Bitcoin, but also other mainstream currencies such as Ethereum. The price has started to go from a low point. This means that the encrypted digital currency market has gradually been reduced from the original niche market a few years ago. Accepted by a wider range of people, and then invest and even hedge.”
It is worth noting that, according to data from major digital currency trading websites, Bitcoin exceeded 11,000 US dollars in the past 24 hours, and the amount of funds flowing into Bitcoin in the global market reached 3.55 billion US dollars. The pursuit of such a huge amount of funds has far exceeded the trading volume of traditional stock market funds for large circulating stocks.
Will the outlook be a new high?
The global debate around the position of the encrypted digital currency market represented by Bitcoin has never stopped, but it is the decentralized characteristic of Bitcoin that has made the attitudes of governments and financial regulators around the world from resistance to acceptance. In the process of transformation, even financial regulatory agencies have regarded Bitcoin as a commodity from the beginning to a change in the current view of it as an asset. What makes the market more concerned about the future trend of Bitcoin?
“In mid-October 2019, the highest price of Bitcoin in the global market was 20,809 US dollars per month. Nearly two years have passed. Bitcoin has fallen below 6,000 US dollars and is now back above 10,000 US dollars. Now we are focusing on 13,800 The pressure level of the dollar and the US dollar is also the time point for many market participants to enter the market. However, there are many factors that affect the price of Bitcoin, but for ordinary investors, it is best not to participate in such a highly volatile market. Although it is known as digital gold, compared with gold, Bitcoin is after all just a string of passwords.”
However, there are also institutions that are optimistic about the long-term prospects of Bitcoin.