The recent rise of Bitcoin from 26,000 to 35,000 has boosted the crypto market.
At first, BlackRock’s application for Bitcoin spot ETF saw an increase in price through fomo, and even after it was later confirmed to be fake news, it did not continue to fall back.
There are three main reasons for this rise:
1. Bitcoin spot ETF is likely to be approved, which has a potential huge positive expectation. If the spot ETF is approved, in addition to the trillion-dollar institutional funds like BlackRock, the tens of trillions of dollars of pension funds in the United States can also buy Bitcoin as a reserve like gold. In short, it is a huge pump.
2. Bitcoin halving occurs every four years. There are more than 100 days until the reward of Bitcoin mining is halved, and the computing power cost will be around 37,000. In any case, when it is below 37,000, the selling pressure will decrease.
3. Expectations of a US interest rate cut. As the decision-maker of the world’s money printing press, if the US cuts interest rates, there will be sufficient money in the market. As long as part of it flows into Bitcoin, it will also drive up the price of Bitcoin.
Of course, in addition to the above three main factors, there are various other factors.
For example, the development and progress of Bitcoin ecology and cryptocurrency technology are increasing day by day.
The most representative one is the Bit Inscription. Let me briefly talk about the Bit Inscription.
BRC20 tokens have been very popular recently, and there have been many beneficial effects recently, but you need to pay attention
1. After ordi became popular in June this year, my friends and I spent more than 300 gas to mine other bitcoin coins, but unfortunately I didn’t get any sats. I lost a lot of gas.
2. The liquidity of BitInscription is very poor. I bought some Animal Coins without watching them. As a result, the Animal Coins have increased by more than ten times in the past few days. I got my money back inexplicably. And it is very fomo, with a steady flow of funds to take over, which provides liquidity for us to cash out.
3. Although the gas of Bitcoin is only tens of gwei recently, it is very unfriendly to many novices. First of all, the block size of Bitcoin is about 100,000 transactions per block. If others use gas to squeeze you, your transaction will not be processed by the miners, and you need to wait patiently for the gas to be reduced. It may even waste gas and fail to get the inscription token as you planned.
4. Because the play method is a fair launch, compared with the ERC20 ecological token, there is no reservation. If you need chips, just pull gas to inscribe. The advantage is fairness, easy to reach consensus, and the cost of playing is the initial price of the inscription. The disadvantage is that it is difficult for big dealers to make markets, and then give benefits to centralized exchanges to let centralized exchanges go online. Unless the transaction volume is really sky-high, it is not worth it for the exchange to develop this technology alone to bleed its own customers.
To summarize briefly: For Bitcoin Inscription, it will be an opportunity for retail investors. There are many 100x coins emerging on it, but it is also a pitfall. Because if you are not familiar with the principle of Bitcoin transfer transactions, you may always lose gas. In addition, Bitcoin Inscription does not have a good value enhancement for Bitcoin at present, except that it makes the Bitcoin network more stuck, but it cannot be denied that this is a technological innovation and provides a direction for miners to have more income after Bitcoin halving. Look forward to ecological progress and solving these problems.
This article is all about my personal opinions. After the short-term surge in the market, there is a high probability that it will adjust. Currently, Bitcoin is falling sideways, and the bulls are very strong. The non-agricultural data is also very good, and it is likely to continue in the future. In terms of operation, it is better to buy on dips. Of course, I have reduced my position in the spot that I have been bullish on at 25,000, and I am currently selling high and buying low.
In addition, after ETH rises, it will drive the altcoin market to rise. If the altcoins you hold have risen a lot, it is recommended to exchange them back to Bitcoin and wait patiently for the huge pump. #BullRun #BTC #ETH。
