Crazy Bitcoin: Breaking through $16,000, soaring nearly 350% in 8 months, how far is it from $20,000

Crazy Bitcoin: Breaking through $16,000, soaring nearly 350% in 8 months, how far is it from $20,000

If we were to take stock of the world's most resilient and profitable investment products in 2020, Bitcoin would be number one, and I believe no one would dare to claim second place! Even though there is still more than a month left in 2020.

On the evening of November 12, real-time data from various encrypted digital trading platforms showed that Bitcoin broke through the $16,000 mark. As of press time for the China Times reporter, at 0:00 on November 13, Bitcoin closed at $16,033.10 per coin, with the highest point of the previous day reaching $16,056.50 per coin. This was only six days after Bitcoin broke through the $15,000 mark.

The reporter also found that since Bitcoin hit an all-time high of $20,000 per unit in January 2018, it hit a nearly three-year high yesterday. And judging from the trend of Bitcoin this year, the price of Bitcoin has risen from a low of around $4,945 in March this year to the present. In just 8 months, the increase in Bitcoin has been close to 350%.

Gold, oil, commodities and even stocks seem to be nothing compared to the rise of Bitcoin!

Bitcoin hits new high price chart

Bitcoin "bull market" is coming

"Looking at global investment assets, the 'representatives' of crypto assets - Bitcoin and Ethereum - have undoubtedly experienced a real bull market this year. Although the mainstream market may not necessarily recognize them, it must be acknowledged that the three major safe-haven assets of gold, the US dollar, and oil will be replaced by gold and Bitcoin at least this year." Wang Heng, a senior analyst in the crypto market, told the China Times reporter.

That is, as of November 12, the total market value of Bitcoin exceeded US$291.5 billion, equivalent to the total market value of A shares of Industrial and Commercial Bank of China, the world's largest bank by market value.

It is worth noting that as the price of Bitcoin continues to rise in recent times, trading sentiment in the cryptocurrency market has also risen extremely.

"The cryptocurrency market performed well during the COVID-19 pandemic, in part because cryptocurrencies, like gold, become a safe haven when risks increase. When the real economy stagnates, a purely virtual tool performs well," said Marc Fleury, CEO of TwoPrime, an overseas cryptocurrency asset management and financial technology company.

In the eyes of senior domestic cryptocurrency players, Bitcoin is an investment that is truly worth investing in and preserving its value.

"If we consider the global situation, the impact of the COVID-19 pandemic on various countries is self-evident, so the performance of the capital market must be poor; secondly, this year is also the year of the US presidential election, and the new US president has not yet been settled. The current situation is actually within the predictions of various observation agencies. This uncertainty has led to the continued weakness of the US dollar; thirdly, the epidemic has caused a huge impact on the global energy industry, especially oil, which has seen a once-in-a-century spectacle of negative prices this year. After taking stock of all kinds of assets, Bitcoin has assumed the heavy responsibility of a safe-haven asset, and its trend chart this year shows that when the global epidemic was the most serious in March and April, Bitcoin quietly embarked on the road to a bull market. " On November 3, Zhou Wei (pseudonym), a domestic Bitcoin investor, analyzed.

In addition to the above factors, we have to mention some positive news. For example, not long ago, the US version of Alipay PayPal supported crypto asset transactions. Its millions of users will be able to use Paypal to conveniently buy and sell Bitcoin; Singapore's largest bank, DBS Bank, is preparing a digital asset trading platform.

Large institutions enter the market to invest in Bitcoin

From being just a "test product" for individual players to now entering the "eyes" of various investment institutions around the world, the price of Bitcoin has gone through a complete cycle of "bull market-bear market-bull market".

China Times reporter found that since the beginning of this year, well-known global listed companies have accelerated their pace of Bitcoin layout. According to statistics from the Bitcoin Treasuries website, more than $6.9 billion worth of Bitcoin is currently held by listed companies, including US software giant MicroStrategy, asset management companies Grayscale and Galaxy Digital, and Jack Dorsey's mobile payment platform Square.

Data shows that MicroStrategy currently owns 38,250 BTC (currently worth about $610 million) since it began buying large amounts of Bitcoin in September. MicroStrategy's move was justified by the economic and public health crisis, unprecedented economic stimulus measures, global political and economic uncertainty, and the risks of storing too much free cash flow in the form of fiat currency or in the form of assets commonly used by corporate finances.

In August this year, MicroStrategy CEO Michael Saylor revealed that Bitcoin could be used as a hedging tool in an uncertain global situation. This investment reflects the company's belief that Bitcoin, as the world's most widely used cryptocurrency, is a reliable store of value and an attractive investment asset with greater long-term appreciation potential than holding cash.

However, some industry insiders revealed to our reporter that from overseas public data, it can be seen that many foreign institutions have allocated Bitcoin, and some domestic financial institutions have also allocated Bitcoin assets.

"Some large domestic financial companies and other types of companies have already allocated Bitcoin two years ago or even earlier, but these institutions have made their allocations very secretive, and it is difficult for outsiders to know their purposes," Zhou Wei also revealed to our reporter.

In Zhou Wei's eyes, it is only a matter of time before Bitcoin reaches $20,000 again, and there are many reasons that trigger Bitcoin to continue to rise.

<<:  What is VIX volatility and what does it mean for Bitcoin?

>>:  Understanding the history of BCH forks in one article

Recommend

Analyze your sleep status from your face

Analyze your sleep status from your face The grou...

Does having a scar on the forehead mean bad luck?

The forehead is the forehead, an important part o...

Why is ENSv2 the new mainstream name service for Ethereum?

With NFT-backed domain names, the Ethereum Name S...

What kind of woman has a hot temper?

A woman's character determines her facial fea...

Nigerian naira devaluation prompts investors to flock to Bitcoin

Introduction: Nigeria's central bank will dev...

Kazakhstan's winter is coming, some miners may face power shortages

Wu said blockchain learned that winter is coming ...

CZ releases Binance 6th anniversary blog: Users first

Dear Binancians, On the occasion of Binance’s six...

Are women with messy eyebrows good at spending money?

In reality, it is easy for us to see that some pe...

The face of a woman who can't bear the setbacks in love

The face of a woman who can't bear the setbac...

How do men read palmistry?

The fortune of a person can be seen from the palm...

Innosilicon A9 Mining Machine Tutorial! Zcash Mining Machine

Algorithm: Equihash Hashrate: 50Ksol/s (+-8%) Pow...