Why is digital currency soaring
Publish: 2021-05-06 21:25:13
1. Money is like this: when it is saturated, it will fall; when it is unsaturated, it will rise,
2. What is the reason for the rise and fall of digital currency on different exchanges? There are many factors for this, eh. Carefully read some of the stock trading process can be.
3. Digital money has quietly entered many people's lives, ranging from the digital savings fund in the bank to the shopping fund in a certain business. And the possibility of legal or official issuance of digital currency has not started from today. With the rise of blockchain technology, legal digital currency has become a key research field of central banks in recent years. Central banks in Britain, Canada and other countries have indicated that they will set foot in this field and put forward their own plans. As early as January this year, the central bank held a seminar on digital currency and said that it had set up a special research team to strive for the early launch of the digital currency issued by the central bank. In fact, since 2014, the central bank has set up a special research team to conct in-depth research on the framework of digital currency issuance and business operation, key technologies of digital currency, issuance and circulation environment, and legal issues.
4. Doggie coin has been doing well recently, but it's suspected of laundering money. Make a little bit of it
5. A large part of the reason for the surge is caused by the current investment environment
new things will always attract the pursuit of unknown people, which is the key point
next is the key blockchain technology behind digital currency, which subverts the Internet at present
as for the era you said, it's still early. At least bitcoin has erupted, and other digital currencies have yet to be verified!
new things will always attract the pursuit of unknown people, which is the key point
next is the key blockchain technology behind digital currency, which subverts the Internet at present
as for the era you said, it's still early. At least bitcoin has erupted, and other digital currencies have yet to be verified!
6. Reasons for bitcoin's surge:
factor 1: bitcoin's spot trading volume rose
the decline on March 13 caused BTC to drop from US $8000 to US $3600 within 24 hours, and the buying volume of coinbase, Kraken, binance, bitfinex and other spot exchanges surged
at the same time, open positions (used to describe the total number of long and short positions opened at a specific time) fell sharply in mainstream futures exchanges (including bitmex, binance futures and okex)
the sharp decline of open position and the obvious increase of spot purchase volume of futures exchange actually lead to the transformation of the market. The spot market began to control the price of bitcoin, rather than the futures market
the futures market usually causes sharp fluctuations in the price of bitcoin, because traders use leverage (borrowed funds) to trade cryptocurrency, while in the spot market, investors buy and sell bitcoin without borrowing funds
this change has stabilized the market, enabled the price of bitcoin to rebound without a significant correction, and the volatility is relatively low
factor 2: BTC should not have fallen below $4000 at the beginning
on March 31, coinbase published a blog post, describing in detail the market trend after bitcoin plummeted to $3600
the exchange said that most users of the platform bought bitcoin after a sudden decline, adding that the waterfall clearing led to a much lower decline in bitcoin on the futures exchange than on the spot exchange
coinbase explained: "waterfall clearing is the most prominent in bitmex, which provides highly leveraged procts. During the sell-off period, bitcoin trading price on bitmex was much lower than other exchanges. Until bitmex was maintained at the time of the highest volatility (based on DDoS attacks), waterfall clearing was suspended and prices rebounded rapidly. When the st settles, bitcoin hovers around $5000, before plummeting below $4000. "
this opens up a theory that bitcoin should not have fallen to $3000 in the first place, which explains why bitcoin rebounded rapidly to $7350 in a V-shape
factor 3: rapid recovery to key support level
since the beginning of 2018, the level of $5800 has been an important support area in history. Avoid bitcoin prices falling between $3000 and $4000, except in December 2018
bitcoin prices quickly recovered from the $3000 range to $5800 in seven days. After three tests in March, the price of $5800 became a strong bottom, allowing bitcoin to continue its rally.
factor 1: bitcoin's spot trading volume rose
the decline on March 13 caused BTC to drop from US $8000 to US $3600 within 24 hours, and the buying volume of coinbase, Kraken, binance, bitfinex and other spot exchanges surged
at the same time, open positions (used to describe the total number of long and short positions opened at a specific time) fell sharply in mainstream futures exchanges (including bitmex, binance futures and okex)
the sharp decline of open position and the obvious increase of spot purchase volume of futures exchange actually lead to the transformation of the market. The spot market began to control the price of bitcoin, rather than the futures market
the futures market usually causes sharp fluctuations in the price of bitcoin, because traders use leverage (borrowed funds) to trade cryptocurrency, while in the spot market, investors buy and sell bitcoin without borrowing funds
this change has stabilized the market, enabled the price of bitcoin to rebound without a significant correction, and the volatility is relatively low
factor 2: BTC should not have fallen below $4000 at the beginning
on March 31, coinbase published a blog post, describing in detail the market trend after bitcoin plummeted to $3600
the exchange said that most users of the platform bought bitcoin after a sudden decline, adding that the waterfall clearing led to a much lower decline in bitcoin on the futures exchange than on the spot exchange
coinbase explained: "waterfall clearing is the most prominent in bitmex, which provides highly leveraged procts. During the sell-off period, bitcoin trading price on bitmex was much lower than other exchanges. Until bitmex was maintained at the time of the highest volatility (based on DDoS attacks), waterfall clearing was suspended and prices rebounded rapidly. When the st settles, bitcoin hovers around $5000, before plummeting below $4000. "
this opens up a theory that bitcoin should not have fallen to $3000 in the first place, which explains why bitcoin rebounded rapidly to $7350 in a V-shape
factor 3: rapid recovery to key support level
since the beginning of 2018, the level of $5800 has been an important support area in history. Avoid bitcoin prices falling between $3000 and $4000, except in December 2018
bitcoin prices quickly recovered from the $3000 range to $5800 in seven days. After three tests in March, the price of $5800 became a strong bottom, allowing bitcoin to continue its rally.
7. Not all digital currencies will keep rising. Just look for valuable currency, not air currency!
8. Will dog coin go up?
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