Bitcoin surges 1,000% this year, causing market concerns as price rises too fast

After rising for three consecutive days and reaching $9,721.7, Bitcoin continued to approach the $10,000 mark in early trading today. Since the beginning of this year, Bitcoin has risen by nearly 1,000%. In the past two weeks, Bitcoin has soared by 45%, while the S&P 500 index, which is in a bull market, took nearly four years to rise by 45%.

If we make a statistics of every node where the Bitcoin price breaks through, we can find that after its price breaks through the $2,000 mark, the time it takes to reach a new high is almost getting shorter.

Bitcoin's rapid rise has also caused concerns among some market participants.

Peter Tchir, a senior investor, wrote in Forbes that although Bitcoin's earlier connection with mainstream financial market products (such as ETFs and futures) helped drive its price up, the recent steep rise and some signs indicate that Bitcoin's price increase may slow down in the future, or even undergo a significant adjustment. He also turned his bullish view on Bitcoin to neutral.

Peter Tchir expressed three concerns about the current situation of Bitcoin:

1. Currently, Bitcoin may be in a state of "buy news and sell facts". Once the news comes out, Bitcoin enthusiasts will shout for higher prices in this bull market, while skeptics are more likely to think rather than rush in. This series of behaviors means the formation of an environment of "buy news and sell facts".

2. In the cryptocurrency field, there are many competitors, which makes some investors wonder which digital currency is the “real one.” Some individuals and entities often launch new variants of digital currencies, which may have a “dilutive” effect on Bitcoin.

3. The issue of illegal capital inflow and taxation related to Bitcoin seems to have resurfaced. After the Chinese government implemented regulation on Bitcoin, it is not surprising that more and more central banks in various countries have introduced policies. Whether Bitcoin can withstand this test is worth paying attention to.

Some signs also show that more and more "American aunts" are entering the market to become "leeks", which seems to be a sign of the end of the bull market. Currently, the search volume for "buy bitcoin with credit card" in Google Trends has reached a historical high.

Image source: Google Trends

Faced with this phenomenon, Mitchell Goldberg, president of investment firm ClientFirst Strategy, said that the current Bitcoin craze marks that people have entered the end of the stupidest bull market.

Wall Street News previously mentioned that Citadel founder and CEO Griffin, who has an investment capital of $28 billion, told CNBC on Monday that he believes the blockchain technology that supports Bitcoin is effective, but that Bitcoin trading may now be subject to speculative frenzy. He bluntly said, "Bitcoin now has many elements of the tulip mania, which we can trace back to the Netherlands hundreds of years ago."

Among the major Wall Street investment banks, Jamie Dimon, CEO of JPMorgan Chase, has always been the "most staunch critic" of Bitcoin and other electronic currencies. After criticizing Bitcoin many times before, he called electronic currency a fraud yesterday and mocked buyers for being stupid and not knowing they had fallen into a trap.

Dimon has previously mentioned that the country will ultimately have control over the money supply, including digital currency, and the Chinese government’s previous closure of Bitcoin exchanges is an example.

BlackRock CEO Fink has previously stated that the real value of Bitcoin is money laundering and crime, and that Bitcoin will be banned sooner or later in the future.

However, despite the bigwigs' earnest propaganda that Bitcoin is a bubble, speculators do not seem to intend to stop.