Bitcoin has fallen sharply. Will Bitcoin bull market continue?

The Bitcoin market has experienced a sharp decline in the past two days. It fell US$10,000 within one day, creating the largest single-day drop in the Bitcoin history. Within two days, it fell from the highest of US$58,000 to the lowest of US$46,000. Although Bitcoin has caused such a large drop in the short term, it seems to me that the bull market of Bitcoin will continue. Both the short-term and long-term factors that led to the increase in the price of Bitcoin continue to exist. Therefore, the current decline is a short-term adjustment, which will not be the beginning of the Bitcoin bear market.

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In terms of long-term factors, the oversupply of the US dollar is still a fact that continues to exist. The market has full expectations for the resulting inflation and the depreciation of the dollar, and it is adopting corresponding measures to hedge this risk. Assets that are considered scarce in the market have therefore been further sought after. High-quality real estate, high-quality stocks and Bitcoin are all attracting large amounts of capital.

In terms of short-term factors, some predictable events this year are positive factors for Bitcoin. The first is the upcoming listing of Coinbase. Under the current private equity market, the Coinbase’s market value has been rising. It is currently valued at US$100 billion. If listed at this market price, Coinbase will be the second largest company by market capitalization after Facebook.

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In terms of Bitcoin user’s transaction behavior, there are now more purchases and long-term holdings. This shows that individual users and institutional users are holding Bitcoin as a hedge asset. This provides a very strong technology for the long-term stable growth of Bitcoin.

In terms of Bitcoin applications, payments based on the Lightning Network have also begun to show their strong advantages. This will have more applications in the cross-border payments for fiat currency. Therefore, more users will be attracted to conduct more transactions on the Bitcoin network.

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Obviously, the liquidity of a token will increase the attractiveness of its value. For example, the NGK project, there are large institutions and enterprises in the capital market gearing up at present. They are convinced that NGK tokens have a great possibility of becoming a 1000x coin in the future. The NGK has continuously built numerous projects along the way, which has promoted the increase in the price of NGK tokens. On the other hand, the increasing number of users of the NGK trading system will accelerate its circulation, thereby promoting the increasing and strong value of NGK tokens. This kind of strong growth will obviously make it more attractive. Therefore, common investors can gradually hold in the form of fixed investment. I believe that in the future, it will give most ecological builders a satisfactory result.

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