Bitcoin price breaks 10,000 amid "holiday mood"! It is highly likely to continue to rise, and mining industry will receive large orders

Driven by holiday sentiment, the price of Bitcoin exceeded 10,000 U.S. dollars on the morning of May 8th, Beijing time. Despite the general decline in the market on the 7th, Bitcoin still maintained an upward trend driven by the sentiment of halving.

Wu said that blockchain has the following judgments on its future trend:

1: Before and after the halving, Bitcoin will maintain a continuous and moderate rise, but it is unlikely to surge.

A big shot in the cryptocurrency circle has predicted that, similar to the halving of BCH and BSV, there will be a certain "festive atmosphere" when Bitcoin halves, which will drive prices up, but there is no need to expect a booming bull market to start immediately. The bull market is expected to arrive in the fourth quarter.

Compared with the halving in 2016, the current price of Bitcoin has risen by 1,500%. However, unlike in 2016, the current trading volume of derivatives such as contracts has far exceeded the spot trading volume. According to CMC data on the 8th, Binance derivatives exchange is already 4 times the spot, and OK derivatives trading volume also exceeds the spot.

(Photo from CMC)

Derivatives can be used for leveraged gambling and risk hedging. With the entry of mainstream institutions and financial professionals, the cryptocurrency market is no longer the casino it once was, allowing the price of Bitcoin to enter a relatively stable and volatile state. Black swan events such as the 312 epidemic are exceptions. The comparison of long and short contracts also shows that the holiday sentiment of halving will lead to a continued moderate rise in prices.

(Image from AICoin)

2: The rise in Bitcoin prices is a lifeline for the mining industry

The cryptocurrency mining industry is the most affected by the halving. On the 8th, as Bitcoin broke through 10,000, the stock price of Canaan Technology, the only listed Chinese mining machine company, soared 15%, leading the Chinese concept stocks. According to industry sources, Bitmain, Shenma and other new high-computing power mining machines have received a large number of orders and are urgently working to increase production capacity. Yesterday, Bitmain's newly released Zcash mining machine was also sold out instantly.

3: The number of Bitcoin addresses increases, indicating that new users are entering

Bitcoin halving is like the World Cup: a cyclical "event marketing" every four years. We can see that the attention paid to Bitcoin on Google, WeChat, Baidu, etc. has begun to increase. The number of Google searches for Bitcoin halving has soared by 3,350%, and it has once again become a hot search on Sina Weibo, and the discussion on Twitter has increased by 313%.

In terms of the number of Bitcoin addresses, it has increased by more than 2 million compared to September last year. Because more user addresses are within exchanges, the number of new Bitcoin users will greatly exceed this number. More users entering the crypto industry is a greater benefit to the industry in the medium and long term.

According to the "Risk Warning on Preventing Illegal Fund Raising in the Name of "Virtual Currency" and "Blockchain"" issued by the China Banking and Insurance Regulatory Commission and other five departments, please establish correct investment concepts and enhance risk prevention awareness.