ZB Academy:A review of the Bitcoin price surge

The cryptocurrency market, which has been volatile for many days under the influence of the Gamestop event, gradually recovered its stability and began to enter a consolidation period. The price of Bitcoin, which was affected by many events on the 29th of last month, has now returned to the price before the event. According to ZB.com’s official market, the price of Bitcoin is currently reported at $32,610, a 24-hour drop of 4.3%, and the 24-hour price range is from $32,156 to $34,267.

The series of incidents on Bitcoin was the beginning of Alistair Milne, a well-known Bitcoin investor and Chief Information Officer of the Atlanta Digital Currency Fund. On the afternoon of January 29, Milne tweeted that hedge funds held a $1 billion Bitcoin short position in CME. In response to this, the crypto community called on Twitter to call for collective action by investors at 12 pm UTC on January 29 to crush short positions.

Subsequently, Elon Musk, the richest man in the new world and CEO of Tesla, changed his Twitter profile to Bitcoin, which caused heated discussion. At the same time Musk also tweeted “In retrospect, it was inevitable”

Several institutions have also begun to post tweets about Bitcoin. Canadian cryptocurrency exchange CoinSmart said that people’s interest in Bitcoin is more than twice that of gold, which corresponds to the data in Google Trends. JPMorgan Chase strategists said that as Bitcoin continues to grow, gold will suffer losses. Billions of dollars of company funds have been invested in digital assets, and investors have also begun to adopt this cryptocurrency. Several surveys have shown that millennials prefer Bitcoin to gold. With fewer and fewer investors holding gold, this trend may continue into the future. Mike Novogratz, founder of Galaxy Digital, tweeted that Bitcoin is a store of value. All value stores are belief systems, and we are attracting new converts at a faster rate.

On the 30th, many analysts and traders pointed out that the two potential factors that contributed to the soaring bitcoin price on the 29th were the expiration of bitcoin options worth about $3.2 billion and a tweet issued by Elon Musk. Luuk Strijers, chief operating officer of Deribit, said that after the expiration of the $3.2 billion bitcoin option, bitcoin began to rise by $5,000. This is either due to the expiration of the option or a tweet from Musk.

Similarly, multiple agencies and multiple analysts made comments on the 30th. Bloomberg strategist Mike McGlone believes that Bitcoin should be an important part of every gold investor’s portfolio. He pointed out that Bitcoin’s current level of volatility is the same as that of gold 40 years ago. Morgan Creek co-founder Anthony Pompliano commented: It is now inevitable for Tesla and SpaceX to add bitcoin to their balance sheets. Ray Dalio, the founder of Bridgewater, the world’s largest hedge fund, believes that Bitcoin is a great invention, but its existence is replaced by risks and network risks. Bloomberg News published an article called “Bitcoin Price: Data Shows Bitcoin May Become the New GameStop” to analyze the incident. The article pointed out that as the struggle between Reddit’s WallStreetBets forum retail traders and Wall Street hedge funds reached a climax, and regulators tried to restrict transactions to appease the crazy market, Musk subsequently pushed up the price of Bitcoin. Even if retail traders are pouring into Bitcoin and other cryptocurrencies, data now shows that hedge funds are still shorting Bitcoin by more than $1 billion.

About ZB Group

ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.

ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank.

Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.

Learn more about ZB Group by visiting www.zb.com

The world’s leading cryptocurrency exchange: www.zb.com. ZB Academy is to provide prefessional blockchain insights.