Bitcoin broke through 6$90,000 after an all-time high quickly**.
On the evening of March 5, Beijing time, Bitcoin** once exceeded 6$90,000, a new all-time high for Bitcoin, reaching 6$920,000, with a total market capitalization of more than $1$3 trillion. However, after reaching an all-time high, Bitcoin** quickly retreated, falling more than 8% and briefly falling below 6$20,000. As of press time, Bitcoin hovered at 6About $60,000.
*From coinmarketcap
Will Bitcoin continue to reach new highs in the future? *What does a sharp retracement after a new high mean? With the April Bitcoin halving event happening, how might Bitcoin move?
Zhao Wei, a senior researcher at OKX Research Institute, told The Paper (www.).the***cn) said that from the perspective of objective data, the approval of bitcoin spot ETF has improved the attractiveness and availability of bitcoin, brought a large number of new funds such as institutions to enter the market, and has become a key factor in promoting bitcoin to refresh its historical record. According to data disclosed by James Seyffart, an analyst at Bloomberg ETFs on social platforms, the single-day trading volume of 10 US Bitcoin spot ETFs reached $10 billion yesterday, setting a new record since listing. Among them, IBIT, FBTC, BITB, and ARKB all set the highest single-day transaction records. In addition to Bitcoin spot ETFs, a series of favorable factors such as global economic trends, market sentiment, the establishment and improvement of the regulatory system, technological innovation within the Bitcoin system, industry halving, and new narratives have jointly affected the trend and volatility of Bitcoin.
Whether Bitcoin will reach new highs.
Bitcoin may have new highs in the future, and this wave of positions opened by Bitcoin ETFs should not be over yet. A cryptocurrency observer told The Paper.
Yu Jianing, co-chairman of the Blockchain Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, told The Paper that Bitcoin's breakthrough through the most important milestone in history represents the strong momentum of the digital asset market and investors' optimistic expectations for future growth potential. This behavior also reflects increased market liquidity, massive inflows of capital, increased participation of institutional investors, and broad retail interest. However, given Bitcoin's high volatility and the impact of various factors such as macroeconomic factors, policy changes, financial leverage, and market sentiment, it may experience significant volatility in the short term. In the long term, as the digital asset market matures and Bitcoin's role in the financial system consolidates, Bitcoin's ** is likely to continue to climb and create new highs.
In late April, the Bitcoin halving event will be ushered in. According to CoinMarketCap, as of March 6, Beijing time, there are 47 days left before the Bitcoin halving.
Jaran Mellerud, co-founder and chief strategist of Bitcoin mining company Hashlabs Mining, told foreign media that the Bitcoin halving event that occurred in May 2020 drove a ** surge in the following months.
Now, with just over a month to go before the scheduled halving in 2024, Bitcoin has broken through its all-time highs.
The above-mentioned cryptocurrency observers told The Paper that according to historical laws, the "super bull market" of Bitcoin generally occurs about half a year after the halving, and there will be a larger wave of ** after the halving is cashed out, and then it will enter the "big bull market".
JPMorgan Chase & Co. noted in a research note at the end of February that bitcoin could fall to 4$20,000. The bank's analysts explained that once the optimism caused by the Bitcoin halving after April subsides, Bitcoin will move towards 4Estimated level of $20,000.
This year's halving of Bitcoin production will once again reinforce Bitcoin's deflationary character. Zhao Wei believes that with the arrival of the Bitcoin halving, it may lead to the impact of miners' profits and the reduction of enthusiasm to participate, or promote the withdrawal of inefficient miners from the market, which will affect the overall computing power and network security of Bitcoin. The question of how to incentivize miners to protect the Bitcoin network has become more urgent, but this brutal halving mechanism has also spurred technological innovation in the mining industry. In addition, with innovative narratives such as Bitcoin inscriptions and scalability solutions that unleash the huge potential of the Bitcoin network ecosystem, increasing network transaction fees are becoming the backbone of miners' income. The current market is still divided on the impact of the April halving event and the development of future market trends, which is not determined by a single factor, but the combined effect of the above mentioned factors, so it is not recommended that investors follow the previous halving single narrative to carve the boat and seek the sword*** should fully understand the high volatility characteristics of the crypto market and do a good job in risk control.
Yu Jianing pointed out that while the halving event may provide upside momentum for Bitcoin, investors should be alert to potential volatility risks, remain sensitive to market sentiment and technical indicators, and consider multiple possible market scenarios in their investment decisions. The current macroeconomic environment, global political events, the psychological expectations of market participants, and the dynamics of other digital asset markets may affect the trend of Bitcoin.
Bitcoin retraced sharply after reaching the highest in history, falling more than 8% all the way
Last night, Bitcoin quickly retreated after breaking through the highest in history, falling by more than 8% at one point. As of the evening of March 6, coin statistics show that Bitcoin has been liquidated by about 1$8.9 billion.
According to the above-mentioned cryptocurrency observers, it is normal for bitcoin to surpass new highs violently**, and a fluctuation of 8% is also normal for bitcoin's volatility.
Yu Jianing believes that the rapid decline of bitcoin after reaching an all-time high last night shows the inherent volatility characteristics of the digital asset market, and also highlights the sensitivity and volatility of market participants' sentiment. According to past performance, Bitcoin usually experiences large fluctuations after reaching new highs, and early investors often choose to take profits, especially at such a critical point, the behavior of taking profits will be more intensive, resulting in a rapid drawdown. In addition, this drastic ** movement can also trigger stop-loss orders for highly leveraged trades, further exacerbating the magnitude of the volatility. Secondly, the actions of institutional participants or market makers in key positions are also important factors affecting volatility. These institutions may resort to short-selling strategies when they believe the market is overheated or at risk, in order to hedge the risk of their positions or seek profits.
Zhao Wei said that Bitcoin's surge** fully reflects the high volatility and high sensitivity of the crypto market. With Bitcoin** hitting a new high this year, the short-term market is overheated and the leverage ratio has risen significantly, resulting in a significant increase in risk appetite for some investors. In this context, it is not excluded that some funds will take profits and lead to a fall. In addition, risk is an intrinsic attribute of financial activities, and the crypto industry is no exception, and it is still facing potential negative factors such as macroeconomic uncertainty, systemic risk, black swans, and unclear regulatory policies. As an investor, you should always remain rational and objective, fully evaluate the market environment, investment preferences, and risk control, and do not blindly follow the trend.
For investors, this sharp drawdown should be seen as a reminder of the inherent risks of investing in Bitcoin, suggesting that investors should diversify their portfolios and have good risk control measures in place to reduce the impact of market volatility on their portfolios. Yu Jianing said.
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