Bitcoin rose to more than $4000 since rebounded more than 6% month towards the 7 biggest one-day gain

[Abstract] bitcoin rebounded Wednesday more than 6% to more than $4000, and will usher in the biggest one-day gain since July.

Tencent Francisco November 28th news according to foreign media reports, bitcoin rebounded Wednesday more than 6% to more than $4000, and will usher in the biggest one-day gain since July. In throwing a lot of customer service recently, bitcoin situation has improved.

Over the past two weeks, by selling a wide range of digital encryption currency hit, the world’s largest encryption currency on the Bitstamp trading platform at the price of $3970.04.

Since this year, bitcoin has fallen more than 70%.

Related news The collapse of bitcoin is more like a real currency crisis being attacked

In the absence of a central bank’s virtual world, who is the last of the buyers?

Bitcoin really is in crisis, you never really declared its death — a theory on the boundary, the electronic currency of lawlessness will be forever in a place, but its price in less than a year fell by 80%, while the whole encryption currency market to erase the market value of about $700 billion.

Where bitcoin will go? A repeat of the true believers are bets like in the past, asset bubbles, such as Internet stocks or real estate bubble: before the roller coaster reopened, remove bad role within the whole system. Based on this view, everything has a price, even if there is no intrinsic value of niche assets. Perhaps the bitcoin price should be more than $3700.

But the performance of the virtual currency since the beginning of this year is not only like a bubble; it looks more like a currency attack. The price collapse occurred mainly in December last year to February this year, from nearly $19 thousand to about $7000. Until early this month, bitcoin is still in the 6000 to 7000 U.S. dollars price, also seems to be too strong to break. Bitcoin prices have support, then caved in.

Bitcoin maintained in the range of 6K to $7K, reminiscent of a currency attack

This is reminiscent of the past central banks in the face of huge selling pressure is how to defend its currency, they use their financial reserves to maintain the price level or range. Like a boxer is ruthless if there is no more resources cuff and kick, to bear the pain, will be knocked down. Think of the 1998 Russian central bank to defend the currency struggle, or defending the pound to the Bank of England in 1992. In these two cases, the first currency is stable, then swing, then crash.

Target

However, bitcoin is not the central bank as a support, a tolerance of bitcoin this movement explanation: bitcoin will be a close contact with the community together to protect their investment. 2014, bitcoin is experiencing the aftermath of the bubble burst, the market price of $350, but suddenly, a huge sell 3 million price of bitcoin $300 single triggered panic in the market. But the encryption enthusiasts gathered to absorb the sell orders, even made the concept of art, “killing bear whale” sellers behavior forever recorded.

But that is the past, now has affected the price of resources has become the center of faith defenders may large, participants, such as the large mining enterprises, exchange, or more than 500 with a $about 10000000 bitcoin address, rather than one composed of geek community loyalty.

The hedge fund GLG Partners manager Raoul Pal said before, if you want to know who has the central bank as the fire to aggressively sell bitcoins, then you can look at the Tether.

Tether claims that they are composed of dollars and other hard currency to support, which means that they can be traded, and as a simple proxy for $in the encrypted exchange, not affected by the type of virtual currency price fluctuations.

However, for a long time, people have suspected that Tether was used to artificially support bitcoin prices. A research report showed that 6 months of this year, when bitcoin prices fell, the new issue of Tether seems to be pouring into the market, help to prevent the fall. The United States Department of justice began a recent investigation involving Tether market manipulation.

Pal pointed out that bitcoin at below $6000 before the exchange rate peg trend. If the defense is broken, regulators also found the investigation evidence of price fixing, so this year will sell not just cyclical bear market.

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