May 14, Bitcoin boarded another recent high of $8126, and quickly returned to $8,000 after falling back to $7800. Above the horizontal line, it is currently stable at around $8,000. In fact, starting at 7 PM of May 13, Bitcoin rallied from $7,100 all the way to $7,800, $700 in just 4 hours.
Driven by the rise of Bitcoin, other cryptocurrencies have also seen a small increase, relatively speaking, Bitcoin is still standout.
Many industry insiders have also given their own analysis on the rapid rise of Bitcoin, summed up the following:
Asset hedging demand boost
Just after the "hard-core response" of the news broadcast last night, the US stocks tumbled and the safe-haven assets reveled.
Data show that the Dow fell more than 600 points, falling below the 200-day moving average; FAANG + BAT + SOX collective bleeding, FAANG five major technology stocks evaporate 130 billion US dollars a day; US cotton, lean hog futures once touched the limit limit, soybean futures Created a new low of more than ten years.
The US debt rose sharply, gold also returned to above $1,300 and Bitcoin rose above the $8,000 mark.
In fact, since May, Bitcoin has risen far more than traditional hedge funds such as gold in the same period and 10-year US Treasury bonds and its hedging function has been fully reflected. The financial market has also used Bitcoin as a better means of hedging. .
Bakkt: Bitcoin futures are good
On May 13, Bakkt, the cryptocurrency exchange, the parent company of the New York Stock Exchange, announced that it will launch a Bitcoin futures contract that complies with federal regulations.
ICE, submitted two application documents to the US Commodity Futures Trading Commission (CFCT), "19-161 Bitcoin Monthly Futures Contract Listing" and "19-160 Bitcoin Daily Futures Contract Listing", detailing The specific operating mechanism of two different bitcoin futures products.
Subsequently, Bakkt CEO Kelly Loeffler also published a blog post saying that they are testing the acceptable level of online Bitcoin futures contracts and custody in July. In addition, Bakkt promised to prepare $35 million to bear the risk of default.
Bakkt has always been highly anticipated and the announcement of compliance with Bitcoin futures has undoubtedly added a fire to the rise of Bitcoin.
Consensus Assembly Effect continuation
The New York Consensus Conference has been convened and the "Consensus Conference Effect" has helped push the Bitcoin up?
Since 2015, the New York Consensus Conference has been held for four consecutive sessions. During each consensus meeting, Bitcoin prices will rise to a certain extent. This correlation is known as the "Consensus Assembly Effect".
On September 10, 2015, the first consensus meeting was held. Bitcoin maintained a small downward trend on a trading day before the start of the meeting. When it was near the meeting, it rose slightly from the low of $235 at that day, up to $240.
On May 2, 2016, the second consensus meeting was held. Due to the "true and false Nakamoto" incident, the price of Bitcoin began to fall from around $453, reaching a minimum of $439, falling nearly $13. But then it began to stabilize and rebound, and almost all the losses were recovered that night.
On May 22, 2017, the 3rd Consensus Conference was held. This meeting reached a consensus on the expansion of Bitcoin. Under the stimulation of this good news, Bitcoin rose from $2,200 during the meeting, on May 25, 2017. It reached more than $2,791 and rose nearly $600.
On May 14, 2018, the Fourth Consensus Conference was held. Bitcoin rose from $8,400 on the day of the conference to $8,800 on May 15, and rose more than $400.
For cryptocurrencies, the importance of consensus is self-evident, and the annual consensus conference is expected by cryptocurrency followers.
And because of the "consensus assembly effect", whenever the conference is to be held, everyone will not be able to ask: Will Bitcoin rise?
FOMO effect highlights
The so-called "FOMO effect" is also the "fear of missing out" effect.
Fundstrat co-founder Tom Lee launched a survey on Twitter that "BTC will have a FOMO effect" attracting 7763 participants.
According to the survey, 32% believe that when BTC exceeds 20,000 US dollars (New ATH); 45% think that when the BTC reaches 10,000 US dollars and 23% think it is now.
In the process of continuous rise of Bitcoin, no one can predict the trend afterwards. Due to "fear of missing out", many investors will invest funds in it and choose to "get on the train" in the process of climbing Bitcoin. Some investors "get on the bus", which further boosted the price of Bitcoin.
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