BigONE View: cryptocurrency wars, this bear market may not last long BigONE
In the cryptocurrency market, Bitcoin is the benchmark of the entire market.
Apple is the largest company in the S&P Index with a market capitalization of US$2.2 trillion. If Bitcoin is compared to a company, Apple’s share of the S&P 500’s total market capitalization and Bitcoin’s share in virtual currencies with the same metrics, Bitcoin will probably be a $17 trillion company. Therefore, the returns of all cryptocurrencies usually have a strong correlation with Bitcoin.
Currently, cryptocurrencies are in a bear market. BigONE analysts had already made bear market forecasts twice earlier this year and made clear predictions that the market benchmark would fall by 20%.
It is actually quite common for Bitcoin to fall by 20% in the process of reaching a record high. Earlier this quarter, BigONE used a simple method to determine whether this decline or rise can bring a new market mechanism. The answer is that Bitcoin will not return to its previous high or lows for at least 90 days.
Bitcoin hit a record high on April 14 this year: $64,888.99. By April 22, it had fallen by more than 20% to a low of $50,500. Then the overall trend of Bitcoin continued to fall, and the lowest point has fallen to a low of $28,825.76. According to BigONE statistics, as of June 27, there are 24 days left before the 90-day threshold. BigONE predicts that Bitcoin will not recover to $65,000 in the next three weeks. If calculated according to the current price of Bitcoin, its currency price will return to the historical high point, and investors will receive a gain of 93.7%. Since the advent of Bitcoin, this has happened no less than 25 times. BigONE believes that this bear market may not last long.
Due to the continued decline in the price of Bitcoin and the sudden change of position of Elon Musk, who previously endorsed it, the tightening regulatory signals of various countries and regions have also increased the buying pressure on the spot market. Although miners are closing the mines, a large number of unused mining equipment is left unused . Then, is there an alternative? Can the plan ease the buying pressure on the spot market?
Although it is not yet clear whether these unused mining machines can be used in mines in other countries and regions if they can be used, it means that the mining machine custody service will be useless, and some investors might have bought and held it. But BigONE believes that, to a certain extent, this can provide investors with the opportunity to buy Bitcoin at a price lower than the spot market. It will also shift the focus of attention to alternatives that are being mined and held to make increasingly attractive capital expenditure forecasts. According to the BigONE data report, the share of short-term holders of bitcoins recently sold in the BigONE market is gradually increasing. That is, most of the bitcoins sold are bitcoins bought in the past 6 months. It means that short-term investors are selling while long-term holders are still holding a “ wait and see “attitude.
In essence, BigONE remains confident in Bitcoin. If you are a senior player in the cryptocurrency circle with sufficient funds, it is better to hold the currency during this period and take a break for yourself while waiting for the re-arrival of the bull market.
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.