Bitcoin’s recent market performance has been amazing and has made headlines in many mainstream financial media.
Looking back on the market this year, Bitcoin has mainly experienced three major fluctuations: Black Friday, production cuts and institutional bulls. In addition, there is also a DeFi boom in between. Although the process was tortuous, it turned out that Bitcoin continued to break through and hit a new high in the past three years.
Keywords: Black Thursday, new crown, epidemic (2020/03/12)
March 12 was called “Black Thursday,” and none of the assets in the global financial markets were spared.
The stock markets of many countries fell sharply. The Frankfurt DAX index, the French Paris CAC40 index, and the London Financial Times 100 index all fell 12.24%, 12.38% and 10.93% respectively. The three major US stock indexes fell more than 9%, of which the Dow fell 9.99%. , The Nasdaq fell 9.43%, US stocks triggered a rare secondary circuit breaker, gold fell below $1,600 per ounce, and crude oil fell more than 8%.
As for Bitcoin, the total market value fell nearly 40% in one day, the largest single-day decline in 2013, which was divided into two declines:
1) From 10:00 AM UTC to 11:00 AM UTC on March 12, the price of BTC dropped from $7,300 to $5,690.
2) From 23:00 UTC on March 12th to 2:15 UTC on the 13th, BTC fell twice, and the price fell from 5800 USD to 3900 USD.
The cause of this sharp drop is generally explained as the rapid spread of the epidemic, the US anti-epidemic policy is not as expected and the announcement of a 30-day ban on travelers from more than 26 European countries, and the European Central Bank’s decision not to cut interest rates, resulting in a comprehensive sell-off and liquidity in the asset market Sexual crunch.
After this incident, the correlation between Bitcoin and various assets was raised again, and the mainstream conclusion is that Bitcoin has the highest correlation with US stocks.
Keywords: Halving (2020/05/12)
Bitcoin halving is one of the major Bitcoin events this year. This production cut is highly anticipated, because from the historical data, the Bitcoin halving event will catalyze the next bull market.
At around 3:23 on May 12, Bitcoin completed the third halving since its birth at a block height of 630,000. The block reward was reduced from 12.5 BTC to 6.25 BTC. When the halving time, the corresponding price of Bitcoin was about 8541 US dollars. .
Interestingly, on the eve of the halving, Bitcoin had a flash crash. At 8 o’clock in the morning on May 10, the price of Bitcoin dropped sharply, dropping by about 15% to 8,200 USD per coin in one hour, causing tens of thousands of people to be liquidated. After the halving was completed, Bitcoin gradually stabilized and rebounded after completing its bottoming and began to fluctuate.
Regarding the halving decline, general analysis tends to sell off by miners because miners accumulated bitcoin by dumping before the halving to obtain sufficient funds to support their business operations.
Keywords: DeFi (June-August)
Although DeFi is not a brand-new concept, after OKEx was launched on COMP, DeFi has become a prairie fire.
With the emergence of star projects such as Uniswap, YFI, Sushiswap, YAM, etc., DeFi popularity continues to rise. DeFi can be said that as soon as a new project is released, it will be robbed by people, and if you grab the top pit, it is equivalent to earning. This also makes DeFi have a strong ability to absorb gold, and mainstream currencies such as Bitcoin and Ethereum were once accused of being sucked by DeFi.
OKEx analysis pointed out that YFI was born, leading the rise of mainstream currencies, but BTC played the role of “crawler tail”, setting the lowest increase of all mainstream currencies, and the effect of funds flowing out of Bitcoin to chase hot spots was very obvious.
From the perspective of the Bitcoin secondary market price, May-July has been in a sideways state until August due to the arrival of institutional bulls, coupled with the help of Sushiswap, and Bitcoin did not get rid of the decline and gradually stabilized at $10,000 per coin the above.
Keywords: Institutional Bull (November -), US General Election
Institutional cattle, that is, the market that continues to this day, is generally considered to be that overseas institutions are vigorously buying bitcoin.
In fact, this round of institutions started when MicroStrategy Inc. announced the purchase of Bitcoin as the main financial reserve asset in August. However, although Bitcoin stood firmly above $10,000 in August, there was no new breakthrough. Instead, it was in November. Changhong’s growth rate has since been enthusiastic, and it has made people call the institution bull (similarly, grayscale’s continuous increase in BTC holdings did not affect the BTC market).
At the same time, the US general election officially kicked off in early November. As Biden’s winning rate increased, financial market uncertainties gradually disappeared. Bitcoin and US stocks rebounded rapidly after a short-term consolidation, and both reached new highs.
Right now, this wave of institutional bulls has not yet ended. Although it has not continued its previous momentum, Bitcoin is around 18,000 US dollars per coin, which is nearly 6 times higher than the dark hour at the beginning of the year.
If you are really optimistic about a general direction, then you should know that every plunge is providing a buying opportunity.
