Crazy again! Breaking through 19000 US dollars is only a short step to the new high

 Crazy again! Breaking through 19000 US dollars is only a short step to the new high

Naeem Aslam of avatrade believes the fear of missing out on the rise is pushing bitcoin to its highest level in three years. Traders know that cryptocurrency assets are not regular investments, they are speculation, and they have to be looked at when they come back. An important factor to keep in mind is that the bull market has not yet begun. So far, its only recovery. A real bull market will only start when prices break through $20000.

Cryptocurrencies rise collectively

The rupiah rose more than 46% in 24 hours

Driven by the rise of bitcoin, cryptocurrency has also risen.

According to coin coin data, as of 6:30 a.m. Beijing time, XRP has risen by more than 46% in the past 24 hours, while XLM, sky, pivx and QSP have risen by more than 30%.

Bitcoin fund rose more than 45% in November

The funds gains have been as high as 45% since November, although the gains have fallen towards the end of the day.

According to public information, the GBTC Fund (grayscale bitcoin trust) was launched by gray assets in April 2018, known as the first publicly listed securities to invest solely in bitcoin and obtain value from the price of bitcoin. Gray assets is the largest encryption asset management company in the world. On November 6, the total scale of gray assets management has reached 9.1 billion US dollars, a record high.

Trading volume tripled on the exchange where PayPal worked

Since PayPal announced that it would provide bitcoin trading services, bitcoin has been booming. Many voices in the market believe that the admission of payment giants has caused bitcoin to be in short supply, thus promoting the rise of bitcoin.

The latest data from coingecko show that the trading volume of itbit on Paxos exchange has been in the same range since September last year, but since PayPal launched bitcoin service recently, the trading volume of the exchange has more than tripled.

Pantera capital, a bitcoin hedge fund giant, estimates that PayPal customers have bought about 70% of the new supply of bitcoin in just three weeks.

Brian Kelly, founder and chief executive of hedge fund bkcm, said the bigger fintech effect was about new demand - square and paypal were making it easier for first-time traders to buy through mainstream apps.

Chris Weston, an analyst at pepperstone, a brokerage firm, believes that the story that bitcoin is being accepted and used is true and that supply is not enough to keep up with demand. PayPal announced on October 21 that it would allow U.S. customers to buy and sell bitcoin, bitcoin cash, Ethereum and letcoin from their accounts. Its a step-by-step program, but given PayPals global presence, the market sees it as a big step forward.

Jacob skaaning, fund manager of ark36, a digital currency hedge fund, said the recent surge in bitcoin was mainly due to a lack of liquidity in supply, while bitcoin trading volume on trading platforms fell due to excessive demand.

Chris Weston of pepperstone, a brokerage, said central banks balance sheets were up, investors were looking for the best hedge against currency depreciation, and the global money supply seemed to be encouraging investors in stocks and cryptocurrencies.

The analyst also noted that while this is a long-term factor, bitcoins infrastructure is set for appreciation - for every 210000 blocks mined, miners rewards are reduced by 50%. Its a form of quantitative austerity. In theory, unless there is a change, the last bitcoin will be produced in 2140.

Others are less optimistic

Peter bukowa, chief investment officer at bleekey consulting, said the idea that cryptocurrencies were replacing one of the worlds oldest safe havens was sheer nonsense..

Asset classes with a history of more than 10 years will not replace those with a history of 5000 years, buchwa said in a report to clients on Monday. Of course, the former can supplement the latter, but it cannot replace it.

Bailey, governor of the Bank of England, has also said that it is difficult to see the intrinsic value of bitcoin and worry about its use as a means of payment. There may be good reasons to hold bitcoin, but investors must understand that the price fluctuation is very large.

Source: Ren Hui, editor in charge of China Fund News_ NBJ9607