A region of a chain of the world, who have to spring.
Any investment market will experience the bull market and bear market cycle, this is the economic law can not be avoided.
Note: the chain get back in 2018, bitcoin soared nearly $20 thousand not only in the history of the highest value in this year, also at the end of the year fell more than 85%. Get the exclusive finishing compiler of CCN chain (original title: Downturn or Not, Bitcoin Has Still Outperformed Apple Since Last January) article, comparing the two secondary market, whether it is the economic cycle of bulls and bears necessary, or precursor of bitcoin value bubble burst?
From the time the recent U.S. stock market once the largest bull market rapidly over the past two years, the parent company of Google Alphabet and apple and other tech company stock prices have hit a record high, the Apple Corp’s share price rose from $115 to $165 or about 43.7% of the parent company, Google Alphabet stock price rose from $792 to 1071 the dollar rose to 32.7%. However, even in the recent bitcoin fell more than 85%, but at the same time the performance is far better than technology companies such as apple and Google’s performance in the stock market,
Even if it is in accordance with the recent minimum of 3155 dollars, bitcoin prices in the past two years the increase is still as high as 215%.
Bitcoin prices return to zero? Impossible
With bitcoin prices continue to decline this year, some digital currency called “brick house” began to release some bearish remarks, they claim that bitcoin will eventually lose value zero. But the problem is that they did not consider a year ago bitcoin prices rose a strong, want to know at the beginning of this year, bitcoin prices rose from $1000 to $19500, an increase of up to 1850%, it is difficult to obtain any a technology company in the traditional stock market performance.
But you also need to understand that any investment market will experience the bull market and bear market cycle, this is the economic law can not be avoided. So when you see bitcoin rose sharply, you need to prepare for, because if there are so amazing prices, often will be accompanied by a downward trend after enduring, and re integration market, return to reason will usually spend several months.
In fact, 2018 is not optimistic about the global economy, not only is the bitcoin slump, the Dow Jones index, as well as in the stock market sell-off, including apple, Google and Facebook, most of the major science and technology stocks also fell.
Balaji Srinivasan is a well-known encryption currency exchange Coinbase chief technology officer, he said:
“Encryption currency really attracts people’s attention in 2011, when people began to pay attention to, the market will be the emergence of a bubble. Indeed, after bitcoin prices began to rise until 2018 soared. Although the current bitcoin prices declined, but it is not zero, but it will gradually become a steady state, then the price will rise gradually. I said in 2011 that the bear market will continue, but the encryption currency will not return to zero. 2011 is a year of “BUIDL”, Coinbase is also in that year the bubble collapse into the construction stage, I also began to participate in the encryption of monetary market.”
Fundamentally, promote the money market and promote the cause of rising encryption and elements of the traditional stock market rose is completely different, but all the investment market will appear bull market and bear market cycle, especially after experiencing substantial growth anomalies, the market usually entered into long-term correction stage.
In fact, in the past eleven years, the Apple Corp’s share price has experienced four major adjustments, and every time the stock price decline at around 30%. At the same time, bitcoin has experienced five major revision, but every time the price drop of about 85%, on average, bitcoin, Ethernet and other mainstream encryption workshop reboxetine currency currency usually requires at least 65 weeks to get rid of a bear market, and create a new record high again.
Market performance based on investor demand and confidence
In addition to bitcoin, Ethernet and other encryption currency Fang reboxetine currency in this emerging market investment, some of the larger traditional investment market can not avoid bearish and bullish natural economy to zero, look at the past few weeks the Dow well illustrates this point. Not only that, the performance of the investment market is also based on the needs of investors, as well as investor confidence in the market. Assuming the encryption currency investors believe that the next few years the market could rebound sharply, so even if a large number of good news can in a short period of time to boost prices rose sharply.
It is undeniable that the encryption with money market trends in the structure of more and more obvious, and the mainstream institutional investors have started to pay attention to the asset class, normative market will become better and better. But this also means that compared to the previous bear market recovery period, now the bitcoin market may need longer time to recover.
Of course, you also need to accept the fact that, after the huge growth of changes and major adjustments are consistent with expectations, but also the inevitable market investment. (the first chain to get App, Chaindder translator from CCN)
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