Bitcoin bull market restarts as it hits 650-day high

Author: Snowmobile to the Equator

Bitcoin enthusiasts had an unusual weekend.

Amid the continued sluggish market conditions of A-shares, gold and other assets, Bitcoin has emerged as a particularly bright spot, attracting the favor of many investors.

Last week, with an increase of 20 yuan per day, Bitcoin struggled to break through 3,000 points. This was the tenth time this year that it has broken through 3,000 points. The previous nine times, it immediately pulled back after the breakthrough. Shorting at 3,000 points seems to have become an iron rule.

After Bitcoin broke through 3,000 points with difficulty on Thursday, it seemed to climb from the cliff to the plain. In the past two days, the market has been smooth sailing, breaking through 3,100 points, 3,200 points, 3,300 points, 3,400 points, and two hours ago, it broke through 3,500 points again. Confidence soared, popularity returned, and the market was surrounded and the army was at the gates, aiming at 4,000 points.

Wu Guanggeng, COO of the newly emerged Bitcoin exchange haobtc in China, said that this market came quite suddenly. Although the halving has been good for the past two months, and the bull market is coming from 2,500 points, the market has been stagnant due to the disturbance of block expansion. The market has been restarted in the past two weeks because of the domestic blockchain craze, which has promoted the revival of Bitcoin. The surge in the market in the past few days is probably the release of the previously suppressed market sentiment.

After in-depth understanding, here is some knowledge popularization. Wu's "halving market" refers to the four-year production cycle of Bitcoin, which was implemented in early July this year. The current daily production of 3,600 Bitcoins will be reduced to 1,800 Bitcoins on July 11, and will continue for four years until the next halving cycle. The continued growth in demand for Bitcoin usage meets the upcoming halving of Bitcoin supply, so everyone is optimistic about the subsequent market of Bitcoin.

The so-called "block expansion" problem refers to the fact that as the volume of Bitcoin transactions increases, the original 1M Bitcoin block size is prone to causing transaction congestion. The industry has controversial solutions to this problem, and it has not been solved for a long time, causing the confidence of Bitcoin holders to decline. Currently, Bitcoin developers have launched the Lightning Network, which can effectively solve this problem and is said to be able to accommodate 100 times the current transaction volume.

At the same time, haobtc is also the largest bitcoin wallet platform in China, which can timely understand the direction of users' bitcoin usage. Wu Guanggeng pointed out that the field that uses bitcoin the most is cross-border small payments, such as music and games. Recently, after Steam, a well-known game platform with 10 million Chinese users, supported bitcoin recharge, a large number of Steam users began to use haobtc to buy bitcoin, and then recharge Steam to buy games.