1、 Bitcoin rose again after a sharp fall, benefiting many people. Despite the volatility in bitcoin (BTC) over the past two days, trading in vertex cryptocurrency appears to be strong. What happened: bitcoin, which tracks the eight major exchanges in the coindesk 20 index, has traded more than $11 billion – a new all-time high from the previous record set of 2017 bull markets, coindesk reported Monday. “A certain amount of money must come from novice and inexperienced (original) investors coming into the market for the first time and panicking when prices start to fall,” bendik norheim Schei, research director at arcane research, told coindesk. “Even in a bull market, these corrections are necessary and healthy,” Schei said Glassnode, an online data analytics firm, points out – at the peak of last week – more than 1.3 million bitcoin addresses are active in a day. “This continued rise demonstrates the impressive level of new adoption and activity of bitcoin and suggests that the number of market participants in the network may be higher than ever before,” glassnode wrote Why it’s so important: ki young Ju, chief executive of cryptoquant, said bitcoin’s slowdown may be due to cryptocurrency approaching its highest level in the region. Ki is based on an analysis of the miner’s position index (MPI), which is the ratio of miners’ positions to the one-year moving average of cryptocurrency. According to Ki, institutional investors driving the latest rally are buying bitcoin, even if it breaks through $30000. However, Darius sit of QCP capital told coindesk that the price drop was likely due to short-term profits made by hedge funds, which soared at the beginning of the year. See also: with bitcoin up 18%, Tim Draper, a longtime bull market, denounces bank “manipulation,” noting that there is a price gap between the Chicago Mercantile Exchange, which is mainly used by institutional investors, and other exchanges that traditional wealth management companies can sell. Price action: bitcoin fell 9.83% to $34498.80 at press time. On Monday, grayscale bitcoin trust (OTC: GBTC) fell 15.8% to $37.40. Benzinga’s view: the current trends associated with bitcoin are certainly mixed. Cryptocurrencies have recently gone through a frenzy of development, and a pullback is no surprise to anyone in the industry. In spite of the collapse, it is worth noting that bitcoin is still trading at a significant year-on-year and month by month growth. The current rise is significantly different from that in 2017, when the cryptocurrency pattern was dominated by retail investors. The existence of whales in cryptocurrency ocean is a new x factor. If the name of one of the big institutions decides to profit from their coins, the downside could be severe. This does pose a problem for people who want to enter the market, but the number of new bitcoin addresses seems to indicate that investors have shown a risk appetite and are willing to jump into bitcoin station wagon even in the event of a small correction. 2、 Bitcoin needs more regulation. Bitcoin’s parabolic earnings attract more regulatory scrutiny of cryptocurrency – the co-founder of a mining company said he was positive about digital money. Peter Wall’s Argo blockchain PLC, which has risen 1400 per cent in the past year, said he believes bitcoin “is moving in one direction” as interest in the sector increases and institutional investors join in. He said it would naturally attract more regulatory attention. “Like any department, regulators dance, push and pull,” wall said in an interview with Bloomberg Television “We think some guardrails are good.” The regulatory environment for cryptocurrency is still in its infancy, but many analysts say rules will evolve as the industry becomes more mainstream. UK financial regulators recently banned the sale of cryptocurrency derivatives to retail investors and warned buyers that they could lose all their money. In the United States, many investment companies have applied to create encryption tracking ETF, but the securities and Exchange Commission (SEC) refused. Last month, van Eck associates Corp. launched a new effort to launch an ETF that tracks bitcoin. Wall Street rekindled the dream of bitcoin ETF through the new SEC filing. Cryptocurrency mining companies’ shares are booming as too many investors want to trade cryptocurrency and there are few financial products available. In a month’s time, Argo’s market value rose from about 25 million pounds (US $34 million) to more than 300 million pounds. The company “mines” cryptocurrencies by using high-performance computers to solve complex problems, and operates data centers in North America, including a 40000 square foot facility in northern Quebec. Bitcoin prices have more than doubled since early November, reaching nearly $42000 on January 8. Bitcoin bulls believe that this rally will be different from when the digital coin crash ended in 2017, when the participants were mainly retail investors. From Paul Tudor Jones to Scott minerd and Stan Druckenmiller, more institutions and prominent investors have begun to allocate money to bitcoin, or are willing to do so. Wall said the central bank’s plan to launch its own version of the digital currency could also benefit the industry rather than hinder it. He said it would “stimulate more innovation in this area, not only for the country, but also for the cryptocurrency as a whole.”. But “they will be different because they will be centralized. They will only be authorized by the government, and things like bitcoin are decentralized in nature. It’s all over the world. “ 3、 Big investors supported the scene, and large bitcoin (BTC) investors (often referred to as whales) seem to have bought into Monday’s price drop, indicating confidence in a sustained bull market. On Monday, the number of bitcoin “whale entities” (clusters of encrypted wallet addresses held by a single network participant holding at least 1000 BTCs) rose slightly to a new all-time high of 2140. Even if the price of cryptocurrency falls more than 20% to a low of $30305, the gains come. The sharp sell-off was driven by a massive sell-off of fuel in the spot market, accompanied by record trading volumes. However, this did not prevent large players from accumulating cryptocurrency, which rose 300% in 2020 and hit an all-time high of $41962 over the weekend. The decline in demand suggests that large investors expect the correction to be short-lived. In previous bull markets, the cryptocurrency was corrected by more than 20%. In addition, the latest bull market is backed by institutional funding compared with previous speculative mania. As a result, occasional price falls are unlikely to scare whales away. The number of whale addresses has increased by nearly 25% year-on-year, and has increased by 200 in the past two weeks. As Rafael Schultze Kraft, chief technology officer of the blockchain analyst glassnode, points out, with the healthy development of the network and the bias towards bullish other indicators on the chain, the bull market may soon recover. Moreover, the liquidity problem of sellers, which contributed to the surge in the third quarter, is likely to persist, as 78% of all bitcoin (14.5 million BTCs) are now illiquid. In a recent report, glassnode said: “it depicts the potential bullish trend of bitcoin in the coming months as the number of bitcoin available for purchase in the future network will decrease. Data from glassnode also shows that some retail investors or weak hands (investors who lack confidence or long-term assets holding resources) have liquidated their holdings. The number of addresses with less than 0.01 BTC decreased slightly from 8.54 million total addresses to 8.53 million total addresses, indicating that some participants responded by selling down addresses. It is worth noting that since a person or entity may have multiple addresses, address based metrics may not display accurate images. According to coindesk 20, bitcoin changed hands at about $33730 at press time, up 3.15% in 24 hours. As bitcoin regained ground, options traders bet $52K to take action in late January.