Bitcoin bull market is back

After the short-lived tens of thousands of dollars in early June, bitcoin recently showed a trend of consolidation. Many people in the circle said that this narrow fluctuation may soon be broken, Medium portal reports. Recently, some institutional investors have been bullish and bought a lot of cryptocurrencies such as bitcoin, asserting that it will hit a new high.

According to a survey released by Fidelity Investment on June 9, more than one-third of the approximately 800 European and American institutional investors surveyed hold cryptocurrency assets, with bitcoin occupying the main share. According to the agency, this indicates that cryptocurrencies such as bitcoin are gaining more and more approval from agencies. Recently, London investment company ETC Group announced that it will list the company’s bitcoin-based trading product BTCE on the German stock exchange Xetra, and called it the world’s first central settlement crypto asset derivative. ETC Group executives said the product will allow investors to hold and trade bitcoin through regulated security products and profit from it. Analysts said that the types of customers investing in cryptocurrency assets are constantly diversifying, and their scope has expanded from crypto native fund companies to various investment institutions such as pension funds. Some insiders said, “There will be more and more traditional financial institutions investing in bitcoin.”

“Giant Whale” hoards coins in the field of cryptocurrency. “Giant Whale” refers to investors who have huge amounts of funds to buy and sell encrypted digital currencies in large quantities. It is worth mentioning that one of the “Giant Whales” and cryptocurrency investment company Grayscale has hoarded a lot of coins recently. The company announced that its total assets under management reached a new high of $4 bln, which was double that of May last year. According to the data of the scale of investment products updated by Grayscale at the end of May, the company’s total assets under management are about $3.8 bln, and the Bitcoin Investment Trust (GBTC) accounts for nearly 90% of the shares. According to reports, two weeks after the third “halving” of bitcoin in May, the number of bitcoins held by GBTC was close to 19K, which was 1.5 times the amount mined during the same period. Some people in the circle said that in theory grayscale has undertaken the pressure from the miners. In addition to bitcoin, ethereum has also become a “buy, buy, buy” target, and this year bought nearly 50% of the mined ethereum. Grayscale executives said that the company’s massive accumulation of cryptocurrencies is mainly regarded as a means of hedging inflation in the “big flood” of US monetary policy under the epidemic. Some analysts pointed out, “Grayscale Bitcoin Trust Fund has a significant premium, or it may promote a substantial increase in long-term currency hoarders.” A currency circle analyst said that Grayscale Bitcoin Trust has reached a new height in history this year, and institutional investors have come .

In March, when the global financial market encountered a liquidity run, bitcoin also experienced a single-day plunge of 50%. But since then, bitcoin has started to rebound strongly. The current bitcoin price has doubled from the March low. Wind data shows that since the beginning of the year, bitcoin has performed better than many global assets, and the cumulative rate of return has exceeded 36%. Now that institutional investors are advancing faster, will the bitcoin bull market make a comeback? Coin Rivet, a blockchain information analysis platform, pointed out that if the price of bitcoin can break through $10,450, or it may imply a comeback in the bull market. “Factors such as halving the stacked rewards and more favored by institutional investors, the price of bitcoin may hit a record high before the end of this year.” Its analysis also pointed out that the subsequent market of bitcoin has a great relationship with the performance of US stocks. Bloomberg said recently that there are signs that bitcoin will have a big bull market in 2020, and it is expected that bitcoin will try to return to the 2017 high and may even break new highs. “The unprecedented monetary quantitative easing policy has led to an oversupply of money in most markets, so it will accelerate the promotion of bitcoin into digital gold.” Bloomberg report pointed out. According to data from Glassnode, a cryptocurrency research institute, the number of miners selling bitcoin fell by 65% after the bitcoin “halved”, implying that miners are temporarily inactive and seeking to sell at a higher price. The reduction of miners’ selling pressure has also led to a new round of price rebounds in bitcoin, which is expected to increase. However, whether bitcoin’s prospects are as good as those mentioned above still need time to test.

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