Bitcoin's value continues to raise, which is generating more excitement in the crypto community. Let's take a look at why this is happening and if Bitcoin's current growth is similar to the 2017 bull run.
Over the past year, the value of Bitcoin has quadrupled, with most of the growth coming in December. The price of the cryptocurrency is close to $ 34,000.
Volatility of 2017 and 2020
Despite the fact that the price of Bitcoin has grown rapidly over the past year, volatility has not been at its peak. At the end of 2017, the volatility was 0.08, and now it is 0.03. This means that as markets develop and liquidity increases, the cryptocurrency market has become less volatile.
By the way, in the current period, the level of Bitcoin capitalization actively dominates the overall level of cryptocurrency capitalization. In November, it was 67%, and in the last period, on the contrary, Altcoin was more popular in the ICO market and occupied 70% of the total capitalization.
Price growth and trading volume Also, now the rise in the price rate did not entail an increase in Bitcoin trading volumes on crypto-exchanges. The last peak of trading was in March, when the cryptocurrency market collapsed, and panic began. And the trading volume of the previous period - the end of 2017 - the beginning of 2018, significantly exceeds the current indicators. Key difference – who real investors are Recent studies found that Bitcoin's current peak is institutional-related and is not really a repeat of 2017. Major players come to the cryptocurrency market to hedge macroeconomic risks. In 2017, most demand came from individual, retail investors buying with their own personal funds, many of whom had varying degrees of experience with and knowledge of cryptocurrency. The interest of institutional investors is manifested in the increase in assets under the management of crypto funds, which increased by 350% over the entire period since 2018, and over the past year by 33%. But the number of really large funds on the market is still very small - only 5% manage assets over $ 100 million. Why does Bitcoin continue to grow? One of the common growth theories for Bitcoin is its protected status. However, it is difficult to draw real conclusions here. Gold has a recognized protected status, but the price of Bitcoin and gold behaves differently. Gold's value fell 2% as the largest cryptocurrency rose 60%. The correlation of the one-day returns of these two assets is only 0.4, and it is difficult to draw conclusions about the connection from this statistically insignificant value. What Bitcoin will be in the future? Over the past few years, there have been many changes: the market for financial derivatives has expanded significantly, the legal framework in this area is being formed, and new cryptocurrency initiatives are emerging. There are a huge number of predictions regarding the future value of the cryptocurrency, but only over time it will become clear how the global economic crisis and other factors will affect the cryptocurrency market. What do you think about Bitcoin's continued growth? Share your opinion in the comments below! If you wanna learn more or know more you can contact my team or you can jump into a one-on-one call with me right now clicking one of the the below buttons. _______________________ 14.95 USD Well spent Why Buy Bitcoin: Investing Today in the Money of Tomorrow by Andy Edstrom
Bitcoin grows stronger every year. What’s going on? It’s not too late to learn about Bitcoin and invest.
He uses to dedicate part of his life to inspire others and help them achieve the most out of their lives. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He is Member of Institute of Directors in London, Member of Changer Club in Riga, Member of Fintech Association of Hong Kong, Member of Singapore Fintech Association, Member of Non Executive Director Association in London and Member of Alumni Network of Draper University in San Francisco. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.
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