As the price of Bitcoin recovers from the massive sell-off caused by the devastating impact of the New Coronavirus on the global economy in March, Bitcoin is receiving new attention.
Affected by the expectation that Bitcoin will halve as soon as next week, the price of Bitcoin has rebounded continuously, skyrocketing 160% in 45 days. It broke the $ 10,000 mark on Friday (May 8) and rose to its highest level since the end of February .
The halving of Bitcoin occurs every four years. In the halving events of 2012 and 2016, the price of Bitcoin increased by 80 times for the first time and by 20 times for the second time. Investor appetite.
Market participants believe that Bitcoin’s plunge in March this year is considered to be the main funds deliberately low-sucking chips to meet the halving market.
Some analysts on Wall Street believe that bitcoin assets held by mainstream U.S. institutions will continue to rise, and bitcoin will shift to a value store similar to gold, instead of being regarded as a risky asset. Price volatility is rising.
An analyst said that a breakthrough of $ 10,000 is only the beginning of a bull market, and bitcoin may eventually rise to $ 13,000 each.
“In our opinion, Bitcoin is trading in a long period of time and will eventually break through the highs,” said Mike McGlone, senior commodity strategist at Bloomberg Intelligence. “We believe that Bitcoin is in a solid bull market and has a solid price basis. In our opinion, the longer Bitcoin stays above $ 8,000, the more solid the basis for price advances.”
According to the summary chart, Bitcoin’s latest transaction price is $ 9947.
According to reports, while pushing Bitcoin back to a key long-term resistance point, due to this week’s rebound, Bitcoin has injected about $ 13 billion into the market.
Some market analysts said that cryptocurrencies are receiving the same attention as gold, and investors are looking for tools to hedge inflation and the devaluation of fiat currencies.
Over the past two months, central banks and governments around the world have injected large amounts of monetary stimulus funds into financial markets to support the global economy affected by the new coronary pneumonia epidemic.
Earlier this week, Paul Tudor Jones, a billionaire investor and founder and CEO of Tudor Investments, also joined the Bitcoin community. He said he bought Bitcoin to hedge inflation.
In a report released this week, Jones pointed out that the world is facing severe currency inflation.
In a world of rising inflation, he said: “The best profit-maximizing strategy is to have the fastest horse. If I were to predict, I would bet on Bitcoin.”
He stated that his BVI fund “may have only single digit proportions of bitcoin futures in assets”.
Jones also compared Bitcoin to gold. He said, “Bitcoin reminds me of gold when I first entered the industry in 1976.”
The billionaire investor is optimistic about these two assets because he expects the price of gold to rise to $ 2400 per ounce.