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Recently, the Bitcoin market can be described as "twists and turns". Since the price of bitcoin hit the highest point of nearly $74,000, it has begun to fall, especially since April, the bitcoin market has suffered a series of "flash crashes", and the price once fell below the $60,000 mark. Since the beginning of May, the bitcoin market seems to have "improved", on May 3, bitcoin touched $60,000 upward, and on May 16, the price of bitcoin rose again.
Data released Wednesday by the Bureau of Labor Statistics of the U.S. Department of Labor showed that the CPI rose 0.3% month-on-month in April, which was slightly lower than the Dow Jones' forecast of 0.4%, and the CPI was still up 3.4% from a year earlier, down from 3.5% in March. This means that inflation has cooled somewhat.
On May 16, Bitcoin broke through $66,000, hitting a new high since April 24. As of press time, Bitcoin was trading at $66,212.4, up 7.31%.
Bitcoin volatility has intensified, according to data from cryptocurrency testing website Coinglass, a total of about 54,219 people have liquidated their positions in the last 24 hours, with a total amount of 144 million US dollars (about 1.04 billion yuan).
Oppenheimer analyst Owen Lau said that the CPI data came in slightly lower than expected, slightly increasing the likelihood of a rate cut, which remains an important factor for the price of bitcoin. After ETFs and the halving, the next major catalyst is a rate cut. Until we see a clearer path for rate cuts, Bitcoin is likely to remain range-bound and trade alongside macro data points.
Looking back at the development of the cryptocurrency industry:
- The number of cryptocurrencies in the world
At present, there are various cryptocurrencies and electronic currencies around the world, and a large number of cryptocurrencies are created by non-financial institutions, which are issued and traded on the blockchain with independent transaction prices. According to Finbold data, in 2020, the number of cryptocurrencies in the world was only 8,000+, and by 2021, it will directly exceed 16,000, a year-on-year increase of 98.98%.
- The scale of cryptocurrency users
According to relevant data, as of June 2021, the number of global cryptocurrency users has reached 221 million, of which it took only four months to increase from 100 million to 200 million users. The user growth that began in January and February 2021 was more driven by Bitcoin, but since May it has been thanks to altcoin adoption, which has seen the number of users increase from 143 million at the end of April to 221 million in June, surging nearly 80 million new users, most of whom are interested in tokens such as ShibaToken (SHIB) and Dogecoin (DOGE). Entering the second half of 2021, the growth rate of user scale has slowed down, and as of December 29, 2021, there were 295 million cryptocurrency users worldwide, an increase of 178.30% compared to the beginning of 2021.
- Bitcoin is far ahead in terms of market capitalization
From the perspective of the global private digital currency market capitalization ranking, as of January 19, 2022, the market capitalization of Bitcoin (Bitcoin) is $783.33 billion, ranking first; followed by Ethereum (Ethereum) with a market capitalization of $365.47 billion; THE THIRD IS LATOKEN, WITH A MARKET CAPITALIZATION OF $247.18 BILLION.
——The United States has become the world's number one destination for bitcoin mining
According to the latest research published by the University of Cambridge, the United States has replaced China for the first time as the world's number one destination for bitcoin mining, accounting for more than 1/3 (35.4%) of computing resources. Compared with September last year, the output of bitcoin computing power from the United States has increased by 428%. followed by Kazakhstan, accounting for 18.10%; the third is Russia, accounting for 11.23%; Canada is at the top with 9.55%.
Both crypto research institutes PlanB and Glassnode predict that the price of bitcoin will rise in 2024 and exceed $100,000. Pantera Capital predicts that the price of Bitcoin will reach $149,000 in 2025 after the end of the entire bull market cycle.
According to Nansen research analysts, the price return of bitcoin after the halving is generally higher, and within 250 days after the halving, its return is five to six times higher than in other years. The analyst believes that at present, the macroeconomic situation in the United States is forcing a correction in risky assets, including cryptocurrencies, but the upward trend of bitcoin remains unchanged.
Earlier, the Standard Chartered analysis team led by Geoff Kendrick warned that bitcoin would fall further to around $50,000. But Bitcoin will rebound from its recent low of $56,500 and target $150,000 by the end of the year and $200,000 by the end of 2025, Kendrick wrote in his latest report.
Note: This article is for content purposes only and does not constitute any investment advice.
Prospective Economist APP Information Group
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