Although the economic crisis is escalating so fast, typically the collapse of big banks like Silicon Valley and Signature Bank, Bitcoin is still increasing strongly (the most recent value has reached more than 30000 USD.
So, is this an opportunity or an investor warning about the crypto market? Let's find out with FinFan through the following article.
Still today, 2022 was the most crisis year of the development of the first blockchain coin in the world. Looking back at the history of this coin, since Bitcoin was created by an anonymous engineer believed to be Japanese in 2008, this coin has been going through 3 severe price crises when at one point this coin ran to a bottom of only $2.10 in just 1 year in 2011.
However, the surprising increase in 2021 (especially at the critical moment when the covid 19 pandemic takes place) to more than $60.000 drew the dream of getting rich for many investors and many people gained a lot of wealth from it.
Suddenly, in a tumultuous 2022 with the collapse of the FTX exchange and the start of a company in the crypto space, Bitcoin was trading at around $16,600 a unit earlier this year (down almost 70% of its value from its 2021 peak of more than $60,000). In the first quarter, the world's largest cryptocurrency grew more than 70%, the most profitable quarter since the first quarter of 2021.
In the second quarter, Bitcoin had many fluctuations. From a one-way increase to over $30,000 in April - the time when global investors rushed to find shelter after the collapse of two US banks Silicon Valley Bank and Signature Bank.
Then, the Bitcoin market weakened when the US Securities and Exchange Commission (SEC) sued Coinbase - the largest cryptocurrency exchange in the US, and Binance - the largest cryptocurrency exchange in the world.
However, Bitcoin managed to recover above $31,400 per coin, the highest since May 2022. The world's largest cryptocurrency is still up 7% in the second quarter. Overall, Bitcoin accumulated 84.3% of the market price compared to the beginning of the year. The above increase exceeded that of US stocks, European stocks, Japanese stocks, spot gold...
During the recent rally, CNN explained that the participation of financial giants was a big motivation. In mid-June, BlackRock - a giant in the field of global asset management, registered to establish a Bitcoin ETF. Cryptocurrency exchange EDX Markets, backed by financial giants Charles Schwab, Fidelity Digital Assets and Citadel, has also been active since late last month.
It wouldn't be too surprising for this coin to grow in a row to a price above $30,000 when the money flow into this coin is increasing day by day.
Bitcoin's growth is not necessarily a sign that the market is in an uptrend season. Usually, the increase in bitcoin price will be the premise for an uptrend cycle of the crypto market. However, for knowing exactly the uptrend market, traders often look at the following 3 next signs that happen in a row after the strong increase of Bitcoin:
However, despite the strong growth from the Bitcoin side since 2 quarters ago, other altcoins on the market such as ETH, BNB only fluctuated slightly or even decreased.
In addition, the market capitalization of cryptocurrency has not increased so high the same as the increase of Bitcoin.
The above reasons show us that Bitcoin is being FOMO and manipulated by the whales of the market. Moreover, American officials have always held the view that they want to tighten control of the cryptocurrency sector.
According to CoinDesk, in addition to suing the two major exchanges, the SEC will have a great deal of power when it comes to deciding whether to approve the Bitcoin ETF registered by BlackRock, scheduled to take place in August. Observers are certain that the cryptocurrency market will immediately plunge if the SEC rejects BlackRock's filing.
In short, the strong growth of Bitcoin does not mean that the cryptocurrency market is positive again. We need some more time to observe and verify if the market is going up or not.
However, cryptocurrency is still a new and extremely modern payment method to be able to conduct cross-border transactions in the fastest and most efficient way.