Partnered With:

Opinion: Where are we in the “bull market”?

Read this article in 9 Minutes

Are we once again in a bubble like in late 2017, or will BTC explode this time forever?

Original title: " Bitcoin Bubble 2020 - When's It Gonna Burst? "

Original author: Dr. Julian Hosp, Hackernoon

Original translation: 0x33

In recent weeks and days, the encryption market has exploded again, and Bitcoin has reached an all-time high by market value, returning to the level of the end of 2017. But we all know what happened shortly after 2017...Bitcoin was in the doldrums for years after that bubble burst and failed to recover.

So we will inevitably ask a question now:Are we in another 2017-like bubble, or is Bitcoin going to burst forever this time?

In this article, we will try to address this question as reasonably and objectively as possible.

What happened in 2017

At the beginning of 2017, the price of bitcoin was still fluctuating around $1,000.

In the ensuing 10 months, the price of Bitcoin has been fluctuating steadily. Around October 2017, the price of Bitcoin has been stable between $4,000 and $5,000 . Suddenly, something triggered a domino effect: Bitcoin gained more and more attention on social media, and then even the mainstream media started covering Bitcoin.

The following is the trend chart of the number of people searching for "Bitcoin" on Google in 2017

In just a few weeks, bit Currency suddenly It became a household name and the price soared to $20,000. Then in early 2018, after a 20-fold increase in Bitcoin, Bitcoin suddenly crashed (and has only now recovered).

So what is the reason for the sudden skyrocketing of Bitcoin?

In short, incredible FOMO (fear of missing out). At the time everyone wanted to get rich quick and invest in Bitcoin without even thinking about it because they were afraid of losing, afraid of being a loser.

Will the same thing happen again in 2020?

The market situation today is very different from what it was three years ago. Of course the same thing is that once again we are at an all-time high and few to no addresses are losing money.

However, the reality is that retail investors (private investors) do not seem to have any reaction to this wave of prices, or Said the reaction was nowhere near as intense as it was in 2017. Even in the summer of 2020, the general interest in Bitcoin was higher than it is currently. The level of interest is not even close to what it was at the end of 2017.

Could it be that they haven't realized that the bull market is here... this Probably not, then a reasonable explanation may be: most people have not benefited from this wave of gratifying gains.

According to the reports of many media and the collection of market information, the current inflow Most of the funds come from institutional investors with large funds who have already included Bitcoin as an asset in their portfolios. Overall, Bitcoin is gaining more and more acceptance, even by institutions and a lot of big companies.

For example, PayPal only recently integrated Bitcoin into its system and now allows Buy, sell and trade, with plans to roll this out globally soon.

This makes this wave of big market more like a carnival of institutions, retail investors and individual investors are mostly watching their happiness from the sidelines. Different from the grand occasion in 2017, after this bull market came, we found that relatives and friends around us seldom asked about Bitcoin or the encryption market, and the mainstream media did not report this matter in a large space... From the perspective of investment Looking at it, this is actually a very good thing.

Rhythm Note: Of course, there are many reasons why it has not attracted large-scale attention. Larger changes have also occurred in the stock market or gold market, attracting more traditional market investors and media attention.

From the perspective of the overall market situation, the current encryption The market is more like early 2017 than late 2017...

< /p>

So, is it meaningful to invest in Bitcoin now?

In terms of investment and investment amount There are two actions that are wrong: investing 0% of your money and 100% of your money.

Once full FOMO sets in and you panic throw all your money into Bitcoin, sure Not a good idea.

However, not investing a penny in Bitcoin does not seem to be a good thing. More and more professional investors have realized this and choose to allocate part of their assets in Bitcoin. As mentioned earlier, this is actually the main driver of the current price increase.