Soared 160% in 5 months, where did Bitcoin’s madness start this year?

Since the beginning of 2019, the price of bitcoin has been “all the way to the north”. Since the beginning of the year, it has risen from 3,300 US dollars per piece to the current 8500 US dollars per piece. In just five months, the increase rate is as high as 160%, which has regained the last year of a bear market. The full decline in the last 7 months.
Although for the “super-emerging market” of digital currency, traditional financial people often ridicule their lack of logic, price volatility is terrible and there is always no valid explanation. The inefficient market pricing leads to news-to-price feedback. “random”. But since the beginning of 2019, this wave of bitcoin has not been accidental.

In February of this year, Grin and Beam were officially released under a privacy policy called MimbleWimble’s new privacy protection protocol, which verifies the sender’s and recipient’s private keys without transmitting any information. While the identity of both parties to the transaction is kept secret, the transaction is almost impossible to track, which is the best of both worlds. With Li Qiwei’s announcement of the plan to introduce the MimbleWimble privacy agreement in the Litecoin upgrade, the price of Litecoin has risen sharply. Since the digital currency world has always had “bit gold, Wright silver”, the motivation behind the creation of Litecoin is to improve bitcoin. Bitcoin also benefits indirectly.
After the currency restarted the Launchpad crowdfunding platform and completed the fundraising of the two projects of BitTorrent and Fetch.AI, the currency platform BNB went out of a wave of explosions. Subsequently, the concept of IEO suddenly sprang up, Prime, JumpStar, stellar plan… The “preferred” platform of each project rose from the ground up and became a new phenomenon-level hotspot in the cryptocurrency market. The attention and participation of the entire digital currency market ushered in Another wave of climax in the first half of this year.

The interest of traditional “giant” companies in the fast-growing digital currency ecology has also given considerable support to Bitcoin, a market-represented currency. In the list of companies that have already laid out or decided to participate in the ecological layout of the digital currency market, we can see leaders in various industries such as Facebook, Disney, Nike, Samsung and Fidelity. Among them, Facebook has announced that it will officially release its own digital currency GlobalCoin in the first quarter of next year; Samsung has built a hardware wallet in the flagship model S10 in the first half of this year, and is developing a blockchain main network based on Ethereum, which is likely to become The technical reserve of the currency; and recently the telecommunications giant AT&T also announced that it began accepting payments in digital currency.

Furthermore, the market still has some expectations for bitcoin ETFs such as VanEck / SolidX that have been postponed many times. US Securities and Exchange Commission Commissioner Hester Peirce said in an interview at the 2019 New York Consensus Conference that the time is now ripe for the approval of Bitcoin exchange-traded funds, and that each application may be approved, but the SEC still has some issues to solve. Such as market manipulation and asset custody. And because the US Securities Exchange Act requires the US Securities and Exchange Commission to decide whether to approve an exchange-traded fund within 240 days from the date of registration, if the SEC does not make a decision after 240 days for any reason, the exchange trades. The fund will be automatically approved. Therefore, the market generally believes that we are very likely to see the birth of the first bitcoin exchange-traded fund before October 13 this year.

The lightning network, which appears to be able to provide a more reliable payment solution for Bitcoin, maintains a high-speed growth momentum and provides a very direct boost to Bitcoin’s further strength. The Lightning Network allows for a large number of transactions to be carried out without the Bitcoin network expanding, and the transaction fee is almost zero. More importantly, the lightning network is able to achieve seconds.
As Bitcoin officially broke through the $8,000 mark, market trading volume has continued to soar in recent times, and the arrival of the flood season has also caused miners to “wake up”. Today, bitcoin continues to occupy the headlines of major websites. The bear market atmosphere of the past year is gradually dissipating, and market confidence can be quickly rebuilt. Bitcoin is obviously also “cognitive” by more people in this process, and is thus “recognized” by more people.

The volume of the three major currencies has reached a new high, and hundreds of altcoins have skyrocketed

In the past few days, the cryptocurrency has risen sharply. Bitcoin has repeatedly broken through the two barriers of 7,000 US dollars and 8,000 US dollars. It once reached 8300 US dollars, and this year, the increase rate exceeded 110%.
As the market soars, the trading volume of trading currencies also rises.

The Odaily Planet Daily found that the overall market trading volume of bitcoin and digital currency has reached record highs. On May 16, the total daily trading volume of the cryptocurrency market hit a new high again, reaching 106.9 billion US dollars. These days’ data have broken through the previous historical highs. On January 5, 2018, the total daily trading volume of the cryptocurrency market reached 70 billion US dollars, a record high.
Among them, BTC, ETH, LTC transaction volume growth is particularly obvious. The Odaily Planet Daily found that among the top 10 currencies of the current market value, the single-day trading volume of BTC, ETH and LTC all broke the historical high.

On May 14, BTC reached US$34.9 billion. Today’s (16th) trading volume was approximately US$32.5 billion, after a record high of US$23.5 billion on January 6, 2018. On May 16, 2019, the ETH transaction volume reached $15.1 billion, exceeding the historical maximum of $9.797 billion on January 11, 2018.
Mainstream currencies are active and trading volume is high

The top ten currencies in the market capitalization, BTC, ETH, LTC trading volume is particularly prominent. As for other cryptocurrencies, such as XRP, the recent trading volume has not broken through the historical high.

Market participants generally believe that an important reason for the increase in trading volume is the increase in market incremental funds, which has led to active market transactions.

“In recent months, it has been a record high. This means that there is a lot of money running into the market.” OKex analysts believe that the main reason for the collective rise in digital currencies came from the rebound of low prices in the previous period before May. After May, due to changes in the global economic situation, the main driving force came from the risk aversion purpose of funds. In the cold winter of the market early this year, the price of many digital currencies has been lower than the average price before the winter. Driven by good news such as IBM, Facebook and other large companies announced to enter the digital currency field, the platform currency rose at the beginning of the year, the market gradually got rid of the pessimism in the bear market some time ago, so the price of digital currency ushered in rising.

Digital currency brokerage 1Token senior analysts believe that BTC is favored for three reasons: First, Bitcoin will be halved again in May next year, according to historical experience, each halving will open a round of halving; second is Institutional investors are running into the market this year. For example, grayscale investment company grayScale Investments, its bitcoin investment trust, hit a new high of $140 million in the year on 5.13, including CME bitcoin futures and Grayscle are strictly regulated. The common investment tools of institutional investors; the third is the impact of trade wars, active funds need to find a way out or hedge, Bitcoin bears part of this function.

The future analysts of the blockchain asset management platform said that the increase in trading volume was mainly caused by quantitative institutions and market makers. He explained that early quantitative institutions and market makers frequently traded in the recent market, causing the total volume of transactions to continue to rise.
The cryptocurrency analyst “No. 7 trader” said, “The skyrocketing market has attracted large funds to enter the market. The entry of large funds has adversely affected the market’s further rise. The market has become dominated by stock funds.

The reason for the surge in LTC transactions, “Seventh Trader” believes that the main reason is that LTC is about to be halved in August this year. The halving of block rewards will lead to an increase in mining costs and a halving of production, which will significantly support the price of Litecoin and its intrinsic value. “LTC is a main line of the first half of the market, halving the market with ‘big pie’ (BTC) to get rid of the $3,000-4,000 area.”