For virtual currency investors, greater important question is this round of currency price rises is really a restart from the bull market or possibly a bear market trap.
Yesterday evening, Bitcoin experienced a soaring price within one hour. The price rose through the violence approximately 6,800 U.S. dollars to some maximum of 8,100 U.S. dollars. It rose by nearly 20% throughout the day. Under the leadership of Bitcoin, other virtual currencies also ushered in a very strong rebound, with single currency gains even exceeding 50%. Faced with the collective warming with the virtual currency forex market, many investors shouted that “the bull information mill back.”
According to data from your CoinMarketCap website, Bitcoin’s cost increased by nearly 20 billion U.S. dollars once you, plus the entire virtual currency forex market also experienced general market growth. There was no “seeking” effect. According to the daily transaction level of Bitcoin exceeding 9 billion U.S. dollars, there has to be billions of incremental funds entering the marketplace yesterday, as opposed to stock funds.
In fact, within the time in the booming of Bitcoin, Bitfinex, an electronic digital currency trading platform, also recorded numerous large purchases. With the surge in buying Bitcoins, many shorts were expected to close their positions, further expanding industry’s upward trend. For this phenomenon, Nick Kirk, data director of Cypher Capital, also expressed his approval. At the same time, younger crowd believes until this sharp rebound is a lot more likely to be the a reaction to the release of early regulatory pressures.
Pantera Capital Management, one on the world’s largest digital currency hedge funds, said Bitcoin has bottomed out. The 6,500 U.S. dollar could be the low point for Bitcoin’s bear market. Bitcoin will likely be above this price for almost all of this year and might exceed the record a lot of 20,000 U.S. dollars recently.
Fundstrat founder Tom Lee also expressed confidence in Bitcoin. He believes how the current Bitcoin P/B ratio along with indicators are almost the same as the finish of 2014 bear market, and possesses formed a vital technical correction. Based on this, he stated that this value of Bitcoin may rise in excess of three times this season and rose to 25,000 U.S. dollars at the end in this year.
Historical data implies that Bitcoin has indeed risen inside second quarter from the calendar year. In the second quarter of 2011, Bitcoin rose around 1964%, 36.25% in 2012… 61.98% in 2016 and 131% in 2017.
Of course, Bitcoin OTC volume also shows indications of market recovery. Since March, Bitcoin trading volumes in Canada, Europe, Vietnam, Mexico, and Vietnam have risen and reached record highs.
With the successive admission of major loan companies such as hedge fund giant Soros and top financial group Rockefeller family, the virtual money market’s financial size will likely be further expanded.
However, it truly is worth noting that although Bitcoin currently features a strong rise, it’s still in the downtrend channel and has now not yet been effectively broken. It remains to appear whether the virtual currency market trading has actually reversed. Investors ought to always be vigilant and focus on position management.