Bitcoin price revives, supporters look forward to a different future

Over the past few years, Bitcoin has attracted the attention of countless investors and technology enthusiasts with its amazing price fluctuations and market performance. Recently, the price of Bitcoin has once again approached its historical high in 2017, and many supporters have begun to look forward to the glory of that year. At this moment, investors are not only looking forward to the rise in prices, but also to the qualitative leap in Bitcoin's status in the financial world. This article will delve into the phenomenon of Bitcoin's price recovery and the bright prospects of supporters for the future.

Bitcoin's price volatility is one of its most striking features. Since its birth in 2009, Bitcoin has experienced several significant bull and bear markets, especially in 2017, when the price once soared to nearly $20,000. At that time, extensive media coverage and public attention made Bitcoin a household name. However, the subsequent bubble burst caused the price to fall rapidly, and many investors suffered huge losses. Now, as the price of Bitcoin rises again, many people can't help but ask: Does this mean that the Bitcoin bubble has recovered? Or will this rise bring a different ending?

Looking back at the market in 2017, many novice investors entered the market blindly and lacked a deep understanding of Bitcoin and the technology behind it, which led to huge market fluctuations. Today, market participants have become more mature, and many investors conduct detailed research and analysis before entering the market. In addition, with the continuous development of blockchain technology, the application scenarios of Bitcoin are also expanding, which enhances its value as an asset.

The recovery of Bitcoin is not only reflected in its price, but also in its gradual recognition in the financial system. More and more institutional investors have begun to regard Bitcoin as a reliable asset allocation tool, and some companies have even included Bitcoin in their balance sheets. The investment behavior of companies such as Tesla and MicroStrategy marks an important milestone for Bitcoin to go mainstream. At the same time, major financial institutions have also launched financial products related to Bitcoin, further promoting the maturity of its market.

Supporters believe that the recovery of Bitcoin is not just a rebound in price, but also a re-examination of it as a means of storing value. Against the backdrop of increasing global economic uncertainty, more and more people are beginning to pay attention to Bitcoin as a means of hedging against inflation. Many economists and financial analysts point out that Bitcoin's limited supply and decentralized nature make it an asset choice that is superior to traditional currencies. In this context, the value of Bitcoin will be further recognized, and the price is likely to continue to rise in the future.

Of course, supporters' vision of the future is not without risks. Market volatility remains, and changes in regulatory policies may also have a significant impact on Bitcoin's price. Governments have different attitudes towards cryptocurrencies, with some countries taking active regulatory measures and others imposing strict restrictions on cryptocurrencies. Investors need to keep an eye on policy dynamics to avoid potential investment risks.

Despite this, many supporters remain confident in Bitcoin. They believe that Bitcoin has great potential for future development, especially in the context of challenges in the global economy, and Bitcoin as an emerging asset class is expected to gain wider recognition. Supporters actively share their investment experiences and views on the future of Bitcoin on social media, forming a strong community atmosphere.

The recovery of Bitcoin not only reflects the market's re-recognition of its value, but also reveals people's expectations for the future financial system. With the continuous development and maturity of blockchain technology, Bitcoin is expected to occupy a more important position in the future financial market. Many supporters believe that Bitcoin in the future will no longer be just a speculative tool, but a real means of storing value.

In summing up all this, we can't help but wonder, does the recovery of Bitcoin mean the rise of a new investment concept? Will the "different from the past" expected by supporters become a reality in the future? Regardless of the answer, the story of Bitcoin continues, and how the future market will evolve is worthy of attention and thinking from each of us.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As Bitcoin approaches its all-time high set in 2017, its backers hope that fewer frenzied retail investors this time around will reduce the chances of a crash.

But analysts say Bitcoin is still not a safe bet given its lack of mainstream use as a payment method and global uncertainty that still looms over financial markets.

"It's a very different situation than it was before," said Larry Cermak, head of research at cryptocurrency media company The Block.

"Prices are rising steadily, retail participation is very limited, and markets are becoming more liquid and more accessible to institutional players. But it's certainly not a safe investment right now and it's still risky."

Bitcoin broke through $18,000 on Wednesday, hitting its highest level since December 2017, and is up about 160% this year.

The sharp rebound in 2020 is similar to that of 2017, when a wave of retail-focused buying pushed the price of Bitcoin to nearly $20,000 before plunging more than 50% just a month later.

But unlike 2017, bitcoin now has a fully functioning derivatives market and custody services from established financial institutions.

Open interest in Chicago Mercantile Exchange (CME) CME.O bitcoin futures this week topped $1 billion for the first time since they were launched in December 2017, and positions in the main options market have risen to more than $4 billion from almost zero at the beginning of 2019, according to cryptocurrency data provider Skew.

Meanwhile, large institutions including Fidelity Investments and Japan's Nomura Holdings 8604.T have begun to provide custody services for cryptocurrencies such as bitcoin to institutional investors.

"There is no comparison between this year and 2017 in terms of market maturity," said Ryan Selkis, CEO of cryptocurrency data company Messari. "The derivatives and credit markets were almost non-existent, and institutional custody was non-existent."

The emergence of this infrastructure has made it easier for professional investors from hedge funds to family offices to seek exposure to cryptocurrencies.

"Availability has changed since three years ago, so the types of players willing to join have expanded," said Tim Swanson, head of market intelligence at blockchain software company Clearmatics.

There is a view that their participation could lead to more liquidity and less price volatility.

Regulation has also evolved. While the cryptocurrency space remains mostly lightly regulated or unregulated, global standards in areas such as anti-money laundering have emerged, opening the way for larger investors.

Mainstream companies and governments are embracing digital currency technology.

Last month, PayPal Holdings Inc PYPL.O said it would open its platform to cryptocurrencies, while peer Square Inc
SQ.N said it had invested 1% of its total assets in bitcoin.

Unlike in 2017, demand for riskier assets is supporting bitcoin's price after governments and central banks responded to the coronavirus shock with stimulus measures.

Supporters say there are only 21 million bitcoins, so they are not subject to policies that fuel inflation.

That has allowed “a broader group of investors to participate in pricing, including those with a more fundamentals-focused mindset,” said Richard Galvin of cryptocurrency fund Digital Asset Capital
Management.

Yet despite these improvements in market structure and mainstream awareness, bitcoin remains highly volatile. The cryptocurrency space remains opaque and less regulated than mainstream financial markets. Trading data remains patchy and concerns about market manipulation are rife.

“Long story short, it’s still a risk market, a risk asset,” said Colin Platt, a cryptocurrency consultant.

Despite the hype, bitcoin remains little used for its intended purpose.

“Given the cost of mining and using bitcoin, and the ease of making electronic payments with contactless payment cards or smartphones, there is no guarantee that bitcoin will be widely used as ‘money,’ ” said Russ Mould, investment director at AJ
Bell.

At the same time, technological progress is also an important factor driving Bitcoin's recovery. The upgrade and expansion of the Bitcoin network has significantly improved its transaction speed and security. With the introduction of second-layer solutions such as the Lightning Network, Bitcoin's transaction efficiency has been greatly improved, and the user experience has been significantly improved. These technological advances have not only improved the practicality of Bitcoin, but also enhanced its appeal as a means of payment.

Against this backdrop, many young investors have begun to pay attention to Bitcoin and actively participate in it. They are not just pursuing short-term profits, but also hope to achieve financial freedom through Bitcoin investment. This vision and pursuit of the future is one of the driving forces behind the continuous development of the Bitcoin market.

The recovery of Bitcoin is not only a market phenomenon, but also an exploration of the future of finance by mankind. When we look to the future, perhaps we will find that Bitcoin is not just a digital currency, but also a manifestation of a new value concept and lifestyle. The enthusiasm and confidence of supporters will undoubtedly inject more vitality and hope into the future of Bitcoin.