Bitcoin went wild again! The price broke through $56,000! Who is the player behind this time?
The price of Bitcoin can only be described in one word, and that is “crazy”. In the past two days, Bitcoin went wild again. After the CPI was announced in February in the United States, it rose rapidly and exceeded US$56,000. In the past 24 hours, more than 85,000 people were liquidated.
However, some industry experts believe that the madness of Bitcoin this time is not entirely affected by the U.S. CPI. According to the latest news, the Russian military is also mining in Siberia recently, which shows the rising of Bitcoin’s international liquidity. The higher the level of Bitcoin’s international liquidity, the higher its price. Thus, when Bitcoin reaches its previous high again, how will it go in the future?
Bob, an industry expert, believes that from the current point of view, there is a looser monetary policy than expected in the market, which will inject a large amount of capital into the financial market, thereby increasing the liquidity of the financial market. However, the financial market is now paying more attention to the cryptocurrency market led by Bitcoin, such as Musk’s Tesla, and the Wall Street giants such as Goldman Sachs, Citigroup, MasterCard, etc., have also set their sights on Bitcoin. This will further push the price of Bitcoin, and the higher the price of Bitcoin, the more institutions will enter, which will push the price of Bitcoin to a maximum. However, Bob also pointed out that retail investors should remain vigilant. This situation may easily cause bubbles, and Bitcoin may become more volatile, which eventually lead to the risk of a crash. For institutions, they may have a larger amount of funds to face risks, but for small and medium-sized retail investors, they will lose huge money, so they should be more cautious in entering.
Lee, the head of trading for NGK blockchain, stated that the increase in Bitcoin’s price may also come from the entry of the Russian military. It is understood that the current increase in the Bitcoin players is also related to countries that are rich in resources, because electricity is relatively cheap there. According to the latest news reports, there is a hydroelectric power station near Irkutsk in the Siberia, Russia, where a huge cryptocurrency mining is hidden. The cost of water and electricity there is extremely low, which can greatly reduce the cost of mining, so it promotes the entry of more players.
In addition, Lee said that Iran’s dependence on Bitcoin is even more serious. Especially after the United States imposed sanctions on Iran, it dealt a serious blow to the economy of Iran, and it had to make up for its economic losses through mining.
However, Lee also believes that now is not a good time for retail investors to enter the market. This is because the price of Bitcoin has reached a certain high, and the fluctuations will follow, which is difficult for retail investors to bear. Lee suggested that if retail investors really want to earn dividends from the cryptocurrency market, it is better to focus on the emerging currencies such as NGK tokens. At present, the NGK tokens have achieved an increase for half a month in a row, and there is still a lot of space for growth in the future. Retail investors can take advantage of the current low price of NGK tokens, buy and hold for a long time to obtain higher profits.
