On the evening of April 12, Bitcoin soared in a matter of an hour. Prices rose from a low of 6,800 U.S. dollars to a maximum of 8,100 U.S. dollars, and rose by 20% within days. With the help of Bitcoin, other virtual currencies also ushered in. A strong rebound, single currency gains even once exceeded 50%.
Bitcoin official website data shows that as of press time, Bitcoin price was 7976.6 US dollars, intraday gain of 2.07%.
For virtual currency investors, the more important question is whether the rise in this round of currency prices is due to the restart of the bull market or the high position of the high-ranking investors.
Nick Kirk, director of data for CypherCapital, said, 'Today's buying of bitcoin has increased, many shorts have been forced to close their positions, which is one of the reasons for the rise, and this sharp rebound is more likely to be the response to the release of earlier regulatory pressures. The recent price of bitcoin has been declining, but the technology development of the new generation of bitcoin continues. Bitcoin prices will return to normal sooner or later.
Specifically, with the increase in the number of participants in the digital currency market and the continuous evolution of infrastructure, many investors choose to use leveraged trading. Currently, many domestic digital asset trading platforms have introduced leveraged contract transactions, with a maximum leverage of 20 times. Leverage Trader's account is very risky. A 10x leveraged account may be forced to close out 8 to 9% of the market, while a 20x leveraged account will not exceed 5%.
If it is a short-leverage + long-spot operation, when the price rises quickly, you may decide to reduce the loss, make up for the short position by purchasing long positions, and then push up the price.
It is particularly worth noting that this pull-up from the time difference of the minutes of the exchanges was started from Bitfinex, and then spread by arbitrage traders quickly to other platforms.
Bitfinex trading platform market showed that in April 12th, Bitcoin soared more than 1,000 US dollars in the intraday trading volume, the volume of more than 25000, according to market value of 7700 US dollars, the market turnover of nearly 200 million US dollars. Among which Bitfinex a volume Nearly 15,000, accounting for 60% of the total volume.
According to a professional investor in the currency circle, a reporter from the Securities Times and Venture Capital Exchange explained that since Bitfinex itself has issued the USDT and then used its own USDT to buy BTC, the Bitcoin price was pulled up in a short period of time. In order to obtain a large number of BTCs, BTC then exchanges a large amount of USD to the BTC to recover most of the additional issuances. A large number of surplus BTCs are surplus. This game can be played once again at a time.
Prior to March 22, Tether’s official just issued 300 million USDTs, and Tether is actually a Bitfinex 'shadow company'. The executives are all the same person. Tether’s newly issued USDT will be transferred to the Bitfinex platform for trading. Bitfinex does not even treat USDT and US dollar transactions differently.
If this is a big explosion, they are waiting for the leek to swarm and then they cash out.
But Pantera Capital Management, one of the world’s largest digital currency hedge funds, said that Bitcoin has bottomed out at the moment. 6500 USD is the low point for bitcoin bear market. Bitcoin will be above this price for most of this year, and may even be possible. More than last year's record high of 20,000 dollars.
Fundstrat founder Tom Lee is also full of confidence in Bitcoin. He believes that current indicators such as Bitcoin P/B ratio are almost the same as the end of 2014 bear market, and has formed an important technical correction. Based on this, he said, The value of Bitcoin may rise more than three times this year and rose to 25,000 USD at the end of this year.
Although Bitcoin currently has a strong rise, it is still in a downtrend channel and has not yet been effectively broken. It remains to be seen whether the virtual currency market has actually reversed. Investors should always be vigilant and pay attention to position management.