Why hasn’t Bitcoin risen (why can’t Bitcoin fall)?
Why hasn\’t Bitcoin risen? Why hasn\’t Bitcoin risen?In the past year, Bitcoin has
Why hasn’t Bitcoin risen? Why hasn’t Bitcoin risen?
In the past year, Bitcoin has fallen from over 8000 US dollars to below 6000 US dollars. Since the beginning of this year, Bitcoin prices have been fluctuating within a downward trend until today, when they have eased to around 7000-7500 US dollars. It can be seen that this wave of decline was caused by the panic of some investors, but it is also this kind of emotion that when the currency price has a significant drop, the market does not rebound. Therefore, for those who do not have a positive view of Bitcoin, they should still maintain a rational view of their investment behavior and avoid blindly participating in the market trends.
Why can’t Bitcoin fall?
Editor’s note: This article is from Odaily Planet Daily and is authorized to be reproduced.
In recent weeks, Bitcoin has performed flatly and even experienced a sharp decline. However, as Bitcoin prices continue to rise, its decline is gradually narrowing. From a technical analysis perspective, it seems that it is already overbought; however, market sentiment continues to deteriorate. So why is Bitcoin falling so low? Because Bitcoin has extremely high price volatility and it faces risks from regulation, government, and institutional participation. If we say that Bitcoin’s market trend has risen by more than 70% since the beginning of this year, then this decline is only a matter of time and does not affect the overall market trend.
According to data from CoinMarketCap, as of 24:00 on November 16, the global cryptocurrency market value was about 2, which is about 80% below the level reached about a month ago (since early March 2019), only slightly lower than the level reached in September last year. In comparison, in the first quarter of 2020, BTC’s increase was more than 8%.
Nevertheless, Bitcoin still maintains a highly synchronized momentum with the stock market. In the first three quarters of 2020, during the US election period, investors’ attitudes towards stocks have changed significantly. Therefore, many people believe that the Federal Reserve may begin to cut interest rates or reduce its balance sheet, rather than companies like Tesla buying Bitcoin on a large scale. At the same time, SEC chairman Grunsel said, “What we must make clear is that there is no evidence now that inflation will rise.” On the other hand, the price of Bitcoin still has room for further decline recently, as it did in mid-June when it fell sharply to $6,000. At the end of December 2017, due to the soaring prices of Bitcoin and other digital currencies, the price of Bitcoin once reached a historical high of nearly $8,000 per coin; however, it fell below $4,000 again in late October.
In fact, these events seem to be caused by macro-financial factors, with the main reason being the high price of Bitcoin.
The first is the instability of the global economic environment, especially after the outbreak of the epidemic in the United States. More and more investors are turning to safe haven tools such as gold, and they prefer to hold something relatively safe to invest in cryptocurrencies. “If you want to invest in a long-term valuable and widely recognized investment product, you need to consider this-it is the only available safe asset, so I recommend Bitcoin as the first sovereign wealth reserve option,” some analysts explain. “Gold is often seen as a hedge, but at some point, when they become unreliable, they turn into a bubble… just like the current gold price, you can do a lot with Bitcoin, and that makes sense.” “Bitcoin is not a truly scarce commodity, but it is spread and stored through the Internet. Its range of uses is very wide and can almost cover all industries.” In addition, there are other issues related to “blockchain” and digital identity:
1. How to define the differences between all roles in the blockchain network?
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