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Bitcoin's big man position faltering? Where is the logic of the recent surge in cryptocurrencies?



In the currency circle, there used to be a conventional view: Bitcoin is the vane of the rise and fall of all digital currencies. When Bitcoin is bullish, other digital currencies will follow suit; once Bitcoin is bearish, all currencies will definitely not be able to escape the fate of falling all the way.

But recently, the digital currency market has shown a "magic development trend": Bitcoin is falling, but in contrast to other digital currencies, it is not affected by Bitcoin at all, but the upward momentum is still violent, and it does not follow the routine at all. .

Does all this mean that the authoritative position that Bitcoin has maintained for many years is no longer stable? What kind of logic does the recent surge of cryptocurrencies follow?

The skyrocketing cryptocurrency continues, but only Bitcoin is missing?

Bitcoin, which has always been known for its firmness, experienced a decline on May 5, with a drop of 8%.

But at the same time, several other popular digital currencies did not fall but rose. On the same day, the price of Ethereum rose by nearly 13% within 24 hours, and the price of Dogecoin increased by 40%.

Data: iPhone bitcoin price rises for the first time in 12 years: Jinse Finance reported that according to encryption community user @MMCrypto’s disclosure of bitcoin prices corresponding to iPhone 4 to iPhone 14 on social media, the bitcoin price of iPhone series mobile phones rose for the first time in 12 years.

The data shows that the iPhone 4 launched in 2010 is priced at about 2901 BTC, and the iPhone 13 is about 0.02 BTC. During this period, the price of Bitcoin corresponding to the iPhone series mobile phones showed a downward trend, but the iPhone 14 is about 0.05 BTC, which is 150% higher than that of the iPhone 13. [2022/9/8 13:15:46]

Yearn Finance, which has been on the cusp last year and is known as the "leader in the aggregation of DeFi applications", has also performed exceptionally well in this wave of market. Its governance token YFI has risen by 24% in the past 24 hours. On May 10, YFI's development momentum became more violent, and the price directly surpassed BTC. For a long time, the user base of YFI has been relatively stable, and they have been paying attention to the accumulation of holdings, and the amount of locked positions has also continued to increase. From this point of view, the market has always maintained a "bullish" consensus on YFI.

The capacity of the Bitcoin Lightning Network is 3,808.73 BTC: Jinse Finance reported that the 1ML website data shows that the number of Bitcoin Lightning Network (Lightning Network) nodes is 17,437, a year-on-year decrease of 13.49%; the number of channels is 84,325, a year-on-year decrease of 2.1%; network capacity It was 3,808.73 BTC, a year-on-year increase of 5%. [2022/5/16 3:18:05]

As the saying goes, without comparison, there is no harm. Compared with the excellent performance of other digital currencies, Bitcoin's answer sheet in this quiz is really a bit bleak.

Not rising is not bad, maybe it's just "the heights are too cold".

Bitcoin's market has stagnated, and many people have begun to criticize its value and performance. In fact, it is more important to figure out the logical connection behind this than to make complaints about it.

Bitcoin has been around for 12 years. As the oldest in the circle, and even has the ancient feats of "creating a precedent", it is extraordinary. In the past 12 years, everyone has gradually recognized Bitcoin, and its value and significance have become heavier and heavier.

Grayscale has purchased 78,354 bitcoins worth $690 million since April 2020: According to news on August 31, an anonymous Reddit user compiled a report of digital asset management company Grayscale from early April 2020 to The current Bitcoin purchase record data form. The form shows that after the beginning of April this year, Grayscale’s purchase of Bitcoin accelerated. In 100 days, the Bitcoin Trust (GBTC) accumulated 78,354 bitcoins, worth $690 million, buying bitcoins at an average rate of 800 bitcoins per day, which is equivalent to 85% of the newly minted bitcoin supply. %. ([2020/8/31]

Today's bitcoin is no longer a "diaosi coin" that can be exchanged for pizza to make a living. It has already achieved the nirvana of the phoenix. According to relevant data, the current valuation of Bitcoin exceeds 1 trillion U.S. dollars, and the price is close to 60,000 U.S. dollars a piece.

Obviously, such a high price is no longer suitable for retail investors to hold and operate, and Bitcoin has long since become a veritable rich and handsome.

Voice | Billionaire Druckenmiller: Don't understand why Bitcoin is needed: According to Wall Street news, billionaire Stanley Druckenmiller said that he doesn't understand why the Fed is stuck at the 2% inflation target. We're not in a recession right now, but we must remain vigilant. In addition, Druckenmiller also said that he does not understand why Bitcoin is needed, and he will neither short nor long Bitcoin. [2019/6/4]

In addition, the reckless era when bitcoins could be dug out by one's own strength is over. All major institutions and capitals are taking precautions and have begun to enter the game on a large scale.

As of the end of 2020, according to incomplete statistics from relevant media, the sum of Bitcoins held by foreign trust funds, listed companies, cryptocurrency exchanges, governments, and cryptocurrency projects, Wall Street has controlled 47.9% of the current Bitcoin supply. Some experts pointed out that Bitcoin and some other popular mainstream digital currencies have long been attributed to "institutional asset classes."

Large institutions enter the market, sitting on a large amount of bitcoins, and the relationship between retail investors and bitcoins becomes "deep and shallow".

Analysis | 93% of Britons Know Bitcoin: According to a recent survey conducted by YouGov, 93% of people in the UK know about Bitcoin, but only 4% think it is very good, 23% It means quite understanding. Furthermore, one in five believe that cryptocurrencies will be as common as cash or credit card payments in the future. 43% of young people are more likely to understand Bitcoin, compared to 16% of older people. [2018/11/9]

As mentioned above, the current estimate of Bitcoin has reached more than one trillion U.S. dollars, which means that its skyrocketing space has been compressed very little. It is almost impossible to happen to Bitcoin.

Although it has ascended to the chief throne of the currency circle, it does not mean that Bitcoin can sit back and relax and be independent of any negative events. "The greater the ability, the greater the responsibility", any disturbance in the currency circle may lead to a decline in the price of Bitcoin.

Binance, the world’s largest crypto exchange, is under investigation by the U.S. Department of Justice and the Internal Revenue Service, Bloomberg reported on May 13. “Officials investigating money laundering and tax violations sought information from individuals with knowledge of Binance’s business,” the report states.

Affected by this news, Bitcoin directly fell by 1,950 US dollars in the short term, reaching the lowest point of 48,400 US dollars, and the overall drop in the day exceeded 1%.

Because of this, retail investors began to look for alternatives. Those new cryptocurrencies with low valuations and low prices but strong consensus seem to have entered the mainstream field of vision.

It will skyrocket, it will plummet. Currency speculation is risky, and investment needs to be cautious.

Dogecoin can be regarded as the hottest and most powerful platform currency at the moment. This Dogecoin, which originally had a market value of only US$1 billion, soared to US$4 billion under the support of a group of bigwigs represented by Musk.

But this is just the beginning. With the support of many retail investors and big Vs, the market value of Dogecoin has directly doubled to 40 billion US dollars, and finally it has made great strides all the way, breaking through 80 billion US dollars.

At the same time, it has also suffered a lot of criticism.

After careful investigation, you will find that Dogecoin does not have any absolute core advantages. Its bullishness largely depends on the "Shoumai support" of the big V in the currency circle and fans. If one day, the voices of these platforms disappear, Dogecoin will lose its strong reason. And many "animal tokens" derived from Dogecoin: Shiba Inucoin, Akita Inucoin, Piggycoin, etc., also have similar shortcomings and disadvantages.

In a word, the current "altcoin boom" represented by Dogecoin is likely to be the result of capital expansion and the rapid rise of the community under the bull market. No matter how you look at it, there is a hint of irrationality. For this type of digital currency, it is recommended that you do a small amount of short-term investment to test the waters. The risk of holding a large amount for a long time is really great, and you need to be cautious and cautious.

If you want to make long-term and large-scale investment deployment, don't always think about the "myth of getting rich overnight", and you must remember two words: maintaining stability.

Whether the company is strong, whether the project itself has prospects, whether the stock index performance is stable, whether the financial report data is true and excellent, whether it is really rooted in the industry, and whether it has enough professionalism. These are all things that everyone needs to think carefully before making a formal investment. question.

We might as well illustrate this point through an actual case in the circle. Presumably everyone still remembers the blockbuster news that "Bit Mining completed the acquisition of" in February this year.

The news of the acquisition was sensational for a while, but the explosion is the explosion. As the saying goes, "the horsepower is known in the distance, and the heart is seen in time." Future performance and development are the core and focus of investors' attention.

The financial report data released by Bit Mining (NYSE: BTCM) this week can illustrate this point very well. According to its public data: In the first quarter of 2021, the net income of Bit Mining increased by 532.3% year-on-year, and as of May 10, 147 bitcoins have been obtained through mining, and the daily output can reach 4. This does not include the 356 coins received from "Good Luck Information" before. Even if the currency price is only 50,000, the total value of these coins has reached more than 20 million US dollars. This also shows that Bit Mining, which has a comprehensive layout of mining machines, hydropower mines, mining pools, and mining machine manufacturing businesses, has huge mining potential. Another piece of news on Wednesday also corroborated this point: Bit Mining was included in the MSCI China Small Cap Index, which shows that investment institutions are also optimistic about its development potential.

From this, it is not difficult to see that although Bit Mining, which has just completed the acquisition, is a newcomer in the currency circle, the first answer sheet handed over is not bad. Whether it is for the currency market or the stock market, it can be called positive.

Of course, it remains to be seen whether the follow-up development of Bit Mining is still strong, but everyone is right to screen and examine investment projects according to this idea.

The hegemony of Bitcoin is no longer, and the old altcoins have skyrocketed rapidly. Today's currency circle seems to have entered the unprecedented "Spring and Autumn and Warring States" era. Everyone can seize the opportunity and fully enjoy the benefits brought by the bull market. But at the same time, be vigilant and watch out for all possible dangers and bubbles.


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