Why Bitcoin hasn’t been falling (Why Bitcoin hasn’t fallen yet)

Why Bitcoin hasn’t been falling Editor’s Note: This article is from the FHBT18 community (ID: FHBT18), written by Peipei, authorized to be reproduced by Odaily Star Daily.

Today Bitcoin fell, and many people asked me if it is a good time to buy some coins on the rebound. In fact, I think it’s like this: on December 18, 2017, which was a week before everyone’s attention, the price of Bitcoin had already risen to over $11,000, but now it has been in a low position and oscillating…

By calculating historical prices, we can roughly see that from October 2018 to the present, the total market capitalization has reached 4 billion RMB.

However, Bitcoin, as one of the largest investment products and asset categories in the digital currency field, is still regarded by market investors as an opportunity for the “next bull market”- it is still able to maintain a continuous upward trend. Before the end of 2020, Bitcoin even briefly reached a position of around $12,000; however, starting from the second half of this year, with the influence of factors such as Bitcoin halving events and global central bank liquidity injections, many institutions and companies have turned their attention to the crypto market. For example, MicroStrategy has recently bought a large amount of Bitcoin, and Ethereum has also continued to rise to new highs. This also indicates that some institutions have a very positive attitude towards the crypto industry and are continuing to expand their layout in the crypto field.

1. Since the beginning of this year, approximately 500,000 BTC has been accumulated, and nearly 20% of the Bitcoin quantity flowing into exchanges has not decreased, mainly due to the increased demand brought by Grayscale’s large-scale purchase of BTC. 2. Institutions have entered Bitcoin in large numbers this year, causing Bitcoin prices to decline. 3. After Bitcoin’s price plummeted by 30% at the beginning of 2020, the overall trend of Bitcoin is still bearish. 4. Due to recent policy reasons, some miners have chosen to shut down or sell, but these selling pressures have not occurred, so there may be some small fluctuations in the short term. 5. Some projects worth noting this year are: Xinxi Corporation co-founder Li Qiwei tweeted: “According to Bitinfocharts data statistics, as of June 22nd, the daily transaction address number on the Bitcoin chain has exceeded 350,000, an increase of 10%+ compared to the same period last year.”

Source: Coinmarketcap

So why hasn’t it been falling for such a long time? Because Bitcoin itself is not something new. As early as July this year, someone proposed a view that Bitcoin is an inflation model, rather than a store of value, which is actually due to the avoidance of uncertainty from the Federal Reserve.

Of course, some analysts believe that Bitcoin may have a bubble period, but this argument is not without basis. At least for now, Bitcoin does not have significant problems: the current market is mostly just a temporary look at its price.

Why Bitcoin hasn’t fallen yet

Editor’s Note: This article is from the FHBT18 community (ID: FHBT18), written by Peipei, authorized to be reproduced by Odaily Star Daily.

Hello everyone, I’m Peipei. The increase in Bitcoin yesterday was quite remarkable. It started from a low of $10,700 and rose sharply to around $10,000 and then fell to below $11,000. After a rebound today, it quickly fell to the support level around $11,100. But it seems that not many people are optimistic about this situation. However, personally, I hope for stability and I would like to further analyze it. Feel free to leave comments for discussion:

Recently, everyone has been paying attention to the news of Bitcoin and the cryptocurrency market. In fact, for ordinary investors like us, there are several issues that need attention.

1. Are the price fluctuations severe?

If the price fluctuations in the past two years were extremely severe, does that mean we are now in a bear market or a bull market cycle? Of course, this trend will also affect the sentiment of the entire market and the ability to respond to the overall environment of digital assets. For example, friends who recently bought in when the price was rising may still see short-term price increases, but in the long run, it will not be too sharp. Therefore, the adjustment in the short term is not significant, so I recommend everyone to be patient and wait.

2. Can Bitcoin still maintain its position above $13,000? Because in the past two weeks, there have been reminders for investors not to blindly go long or short mainstream assets, especially for some smaller varieties such as Ethereum, which have limited room for upside. Many articles have also been reporting that Bitcoin may fall out of this range and enter a period of consolidation. Therefore, I think there are definitely some positive factors here, and these can be used as references to understand. After all, there have been hundreds of projects listed on exchanges, and the recent steep dive of Bitcoin in the past two days has also brought panic to outsiders. Additionally, there have been significant drops in the domestic stock market in the past few days, so many people will ask why they should buy on the market when it is bottoming at this time.

3. Will “big players” harvest?

Some people think that this situation is unreliable, while others are considering how to concentrate funds instead of relying solely on altcoins to sell off. In fact, there are reasons for doing this. First, they themselves do not have any substantial business income to support the financing of other projects, but instead apply their own blockchain-related technologies to other fields. This is also referred to as token issuance, which is actually a process similar to issuing stocks. It does not circulate at the secondary level like traditional securities through the form of increased issuance, but its purpose is just a means to avoid risks.