What are the secrets of the bitcoin market? Bitcoin pared its losses after falling 14% to $27,850 earlier Monday, continuing the decline after posting unprecedented gains at the start of the new year.
According to Reuters, the world’s most sought-after cryptocurrency jumped above $30,000 for the first time on Saturday and touched a new record high of $34,800 the next day. To know What are the secrets of the bitcoin market, just keep reading.
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What are the secrets of the bitcoin market
Before you know What are the secrets of the bitcoin market, you need to know if the bitcoin tragedy of 2017 will be repeated?
According to Sputnik, skeptics dismissed the massive rise in the price of the digital currency “Bitcoin”, over the past two months, as another example of speculation that such upward waves usually tend to end in tears and heartbreak.
These fears are a reference to the bullish wave at the end of 2017, when the coin reached the level of $19.6 thousand, making fabulous gains for its early investors, and even those who entered the market a few weeks ago when the price was around several hundred or a few thousand dollars.
More than 300%
The price of “Bitcoin” increased over the course of 2020 by more than 300%, approaching $ 30,000, compared to about $ 7,000 12 months ago, a record high for the world’s most famous digital currency.
But the gains did not stop there, as the cryptocurrency jumped from about 14 thousand dollars in early last November,
to more than 34 thousand dollars last Sunday, continuing its gains in the new year, in a huge jump that took two months, which brings to mind The jump for 2017.
Losses are different
In any case, (so far at least) this sudden loss does not seem sustainable or expressive of the market direction during the coming period,
As the currency reduced its losses after that during Monday’s trading, to decline by only 6.5% at the level of $ 30941, according to the data of the Coin platform. Disc”.
Some see the Bitcoin madness this time as justified and has good reasons, which will spare the market a severe crash like the one that followed the 2017 wave.
The total value of the Bitcoin market is now nearly $600 billion compared to about $320 billion in late 2017.
This time around, major investment firms such as JPMorgan, Guggenheim, Tom Lee of Fund Strat, hedge fund legend Paul Tudor and insurance giant MassMutual have bet hundreds of millions of dollars on Bitcoin’s rise. Some even expected it to reach $400,000.
Moreover, participation from financial transaction firms Square, PayPal, and Visa, which are said to be “actively working with more than 25 cryptocurrency companies on a variety of Bitcoin-related products and services,”
supports the market with reasons to use The digital currency, according to a report by the American “Axios” website.
Volatility is expected to a large extent. In the event of a major correction (sharp decline in financial markets), institutions expect to be protected from a lot of repercussions.
In a recent note, JPMorgan analysts said that if pension funds and insurance companies in the US, the Eurozone, the UK, and Japan allocate 1% of assets to investing in Bitcoin, it would lead to a $600 billion increase in demand. You know now What are the secrets of the bitcoin market.