2021 halftime is over! How long will the bear market last?
BigONE is a beneficiary of the cryptocurrency boom. Since its establishment, it has always provided investors with safe and stable cryptocurrency transactions and has won numerous praises. 2021 has been extraordinary for the cryptocurrency circle. The market volatility continues to be like a roller coaster, and the bear market seems to have quietly arrived. Take the leader Bitcoin as an example. Its price fell from US$62,000 in mid-April to US$34,000 today, a drop of more than 45%.
Although the price of Bitcoin has stabilized recently, the sell-off in the market has risen sharply, which seems to remind investors that the cryptocurrency market is in a major cycle of prosperity and depression. So what impacts will this have on the future of BigONE?
How long will the bear market last?
The fluctuations in the price of cryptocurrencies impact BigONE because the fluctuations in currency prices are directly related to BigONE’s user transaction volume and transaction amount. As the price of cryptocurrency plummets, users' trading activities will be decreased. Reduced user activity means less transaction volume. If the current ear market continues, BigONE’s transaction revenue will continue to decline.
As time progresses, the first half of 2021 is coming to an end. How long will the bear market rage in the currency circle last?
According to data from CoinMarketCap, since the rise to $35,000 on June 28, the trading price of Bitcoin has always fluctuated around $35,000. With the migration of Bitcoin miners and mining farms to the west, the impact of policies against Bitcoin mining in many countries worldwide is weakening, which has caused the price of Bitcoin to rebound slightly and also allowed the price of altcoins to breathe. Because Bitcoin showed signs of growth of more than $34,000, the price of most altcoins has improved. Tesla founder Elon Musk tweeted that he expressed a series of major contributions to the Dogecoin blockchain. The updated support stated that these changes would redesign the software architecture of the virtual currency, which directly led to the rise in the prices of Dogecoin and Ethereum. The increase of Ethereum exceeded 17%, which temporarily pushed the currency price back to more than US$2,100. . If Bitcoin can turn the $35,000 level into a support level, BigONE analysts predict that Bitcoin will likely rebound to the $38,000 to $41,000 level.
BigONE believes that the slight rebound in Bitcoin may be related to El Salvador’s large purchases of Bitcoin, which has triggered an increase in demand. On June 27, the President of El Salvador had stated that the government would provide each citizen with 30 US dollars in Bitcoin. And on September 7 this year, Bitcoin was officially adopted as legal tender. It is estimated that 4.5 million Salvadoran adult citizens will be able to receive Bitcoin by then. Based on this calculation, El Salvador will purchase $135 million worth of bitcoin, and the number of bitcoin holders will immediately increase by 2.50%. If calculated by the market value of Bitcoin, El Salvador’s move does not account for a large proportion of the demand for Bitcoin. Still, the positive impact it triggers is immeasurable. In addition to the increase in the number of users holding the currency, it will also increase the demand for Bitcoin. The chain reaction produced by the market environment in China has brought about a surprisingly positive trend, and the small increase brought by US$135 million was just the fuse. It will provide the market with stronger confidence, and expectations for the market's upward trend will continue to increase.
The previous BigONE article also said that for Bitcoin, a 20% drop is a widespread volatility process in the process of hitting a new all-time high. From the data point of view, most of the bitcoin currently sold in the market are bitcoin bought in the past 6 months. The share of short-term holders and retail investors is gradually increasing, while long-term holders still maintain a wait-and-see attitude. Short-term investors will buy and sell more frequently, which means that investors are optimistic about the future of Bitcoin.
On the whole, BigONE’s current market prediction is still full of confidence. Although it may face downside risks in the short term, the long-term upward trend is clear. From the perspective of market performance and investor behavior, investors have more confidence in the market's long-term trend. Therefore, the strategy of holding or buying has become the current mainstream investment operation. That is to say, the bear market will not last long, and the bull market may debut in the second half of the year.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
