Breaking through $8,000, trending on Weibo, sorry, Bitcoin has risen again

When I woke up, Bitcoin broke through $8,000.

Demand for safe-haven assets, positive news about Bakkt Bitcoin futures, consensus conference effect, FOMO effect... Who is actually driving the price of Bitcoin?

It broke through 8,000 US dollars and became a hot topic on Weibo. When I woke up, Bitcoin had risen again.

Data from Huobi Global Station shows that at 6 a.m. on May 14, Bitcoin reached another recent high of $8,126 (about 54,444 yuan). After a slight drop to $7,800, it quickly returned to above the $8,000 level and is currently stable at around $8,000.

In fact, starting at 7 o'clock in the evening on May 13, Bitcoin entered a frenzy mode, soaring from US$7,100 to US$7,800, an increase of US$700 in 4 hours.

Driven by the rise of Bitcoin, other mainstream currencies also saw a small increase, but relatively speaking, Bitcoin still stands out.

Many industry insiders have also given their own analysis on the reasons for the rapid rise of Bitcoin, which can be summarized as follows:

Boosted by asset hedging demand

Just after the "hardcore response" video of the News Broadcast went viral last night, U.S. stocks plummeted and safe-haven assets went wild.

Data shows that the Dow Jones Industrial Average fell more than 600 points, breaking below its 200-day moving average; FAANG+BAT+SOX collectively suffered heavy losses, with the five major FAANG technology stocks evaporating $130 billion in a single day; U.S. cotton and lean pork futures both hit the limit down at one point, and soybean futures hit a new low in more than ten years.

U.S. Treasury bonds rose sharply, gold returned to above $1,300, and Bitcoin even broke through the $8,000 mark.

In fact, since May, the increase in Bitcoin has far exceeded that of traditional safe-haven funds such as gold and 10-year U.S. Treasury bonds in the same period. Its safe-haven function has been fully demonstrated, and the financial market has more or less regarded Bitcoin as a better safe-haven tool.

Bakkt Bitcoin futures under NYSE parent company are positive

On May 13, Bakkt, a cryptocurrency exchange under the New York Stock Exchange's parent company, announced that it would launch Bitcoin futures contracts that comply with federal regulations.

ICE, the parent company of the New York Stock Exchange, submitted two application documents to the U.S. Commodity Futures Trading Commission (CFCT), "19-161 Bitcoin Monthly Futures Contract Listing" and "19-160 Bitcoin Daily Futures Contract Listing", which detailed the specific operating mechanisms of two different Bitcoin futures products.

Subsequently, Bakkt CEO Kelly Loeffler also published a blog post saying that they are testing the acceptability of launching Bitcoin futures contracts and custody in July. In addition, Bakkt promised to prepare US$35 million to bear the risk of default.

Bakkt has always been highly anticipated, and the announcement of the launch of compliant Bitcoin futures has undoubtedly added fuel to the rise of Bitcoin.

The “Consensus Conference Effect” Continues

The New York Consensus Conference has been held. Will the “Consensus Conference Effect” boost the rise of Bitcoin?

Since 2015, the New York Consensus Conference has been held for four consecutive sessions. During each consensus conference, the price of Bitcoin will rise to a certain extent. This correlation is called the "Consensus Conference Effect".

On September 10, 2015, the first Consensus Conference was held. Bitcoin maintained a slight downward trend in the trading day before the conference. However, as the conference approached, it rose slightly from the low of the day at around $235 to a high of more than $240, an increase of nearly $5.

On May 2, 2016, the second consensus conference was held. Due to the “real or fake Satoshi Nakamoto” incident that day, the price of the coin began to fall from around $453, reaching a low of $439, a drop of nearly $13. But then it began to stabilize and rebound, and almost recovered all the losses in the evening of the same day.

On May 22, 2017, the third consensus conference was held. This conference reached a consensus on Bitcoin expansion. Stimulated by this good news, during the conference, Bitcoin rose from $2,200 to more than $2,791 on May 25, 2017, an increase of nearly $600.

On May 14, 2018, the fourth Consensus Conference was held. Bitcoin rose from US$8,400 on the day of the conference to US$8,800 on May 15, an increase of more than US$400.

For cryptocurrency, the importance of consensus is self-evident, and the annual Consensus Conference is highly anticipated by cryptocurrency followers.

And because of the "consensus conference effect", every time a conference is about to be held, everyone can't help but ask: Will Bitcoin rise?

The “FOMO effect” is evident

The so-called "FOMO effect" is the "fear of missing out" effect. Everyone likes to chase rising prices because they are afraid of missing out.

Fundstrat co-founder Tom Lee launched a survey on Twitter on "At what price will BTC experience FOMO (fear of missing out) effect", which attracted 7,763 participants.

Survey data shows that 32% of people think it will happen when BTC exceeds $20,000 (a new high); 45% think it will happen when BTC reaches $10,000; and 23% think it is now.

As Bitcoin continues to rise, no one can predict its future trend. For fear of missing out, many investors will invest their money in it and choose to "get on board" as Bitcoin rises. And it is precisely because more and more investors are "getting on board" that the rise in Bitcoin prices has been further boosted.

In fact, Shenlian Finance observed that not only existing investors in the cryptocurrency field, but even people who had never been exposed to cryptocurrencies before began to participate in it because of the news of Bitcoin's rise.

This article is original by Deepchain ( ID: deepchainvip) .