What is a speculative bull market (What is a speculative opportunity)?

What is a speculative bull market? What makes Bitcoin rise sharply in a short period of time is the most famous topic in the field of cryptocurrency. However, it is different from other types of bull markets – they usually start at lower prices. When the price reaches a new level (such as the peak in 2017), people often choose to sell; and when the price falls to a certain extent, they sell; or conversely, when they return to the historical high point, investors turn to another peak.

For most people, this pattern seems strange: why does such a bull market occur? This is mainly because the market does not have enough supply to support the new market structure. Therefore, if there is a large amount of buying or selling funds in the market, the liquidity and value of the market will be greatly reduced. However, if the market has entered a bear market cycle and the price falls to a high point, a “speculative bull market” appears. This phenomenon has been developing in the past few months. However, in fact, due to the lack of support for hedging and arbitrage strategies, some traders are conducting another round of transactions, causing many people to be unable to profit and hold assets for a long time, which may make the cryptocurrency industry very unstable.

Although there are similar situations, in some aspects, we can see this. In the cryptocurrency ecosystem, a popular method is to achieve gains through leveraged trading. Most of the stocks in this portfolio are generated during the bull market. However, over time, more and more institutions have adopted the rate of increase, especially in the United States, and in places outside the United States (such as Switzerland) stock market, this situation may change soon. For example, the average purchase volume of Bitcoin is currently about $1 billion, and it reached a historical high of $5 billion in February 2020.

However, this trend does not continue endlessly-although there have been huge changes recently, it is still challenging in the short term. In fact, since late September last year, the BTC price has been maintained above the support level of $10,000, which is a key technical indicator that shows that investors on the network are accumulating a large amount of capital to maintain the current upward trend. In addition, as time goes by, more capital is being invested in these risks.

The original article is from zycrypto, compiled and organized by the blockchain knight, and the English copyright belongs to the original author. Please contact the editor for the Chinese reprint.

What is a speculative opportunity

In the field of cryptocurrency, trading opportunities are a concept that many people are interested in. For those who are not familiar with the topic, this is an interesting topic: what is a speculative opportunity?

We know that trading is a risky investment, but it is also called a volatility investment. “Return” refers to companies or institutions that can create profits or obtain profits. Since this way is valuable to both investors and traders, it can be understood why some companies choose to “return” to the market instead of making money themselves – this means that they will profit from the income of other companies; And these funds often come from their personal savings accounts or traditional financial instruments such as mutual funds.

But trading is not easy to achieve, as you have to find the right products or services to provide returns to others. If this happens, it is impossible to predict whether the price will rise or fall.

In addition, traders often look for new opportunities in a bear market. When people start to pay attention to market changes, they may need to consider the price performance of Bitcoin, Ethereum, and other cryptocurrencies, as well as the increase in their correlation and combinability.

However, capturing speculative opportunities is not easy, the term “speculative opportunities” is common, but in most cases, it only applies to short-term markets. Unlike stocks, the magnitude of stock market fluctuations depends on changes in the demand of buyers and the demand of sellers.

On the contrary, when a specific asset class performs well and continues to rise, trading can become very important and may become a major market indicator. With the passage of time, this issue has been resolved, and this trend will continue. As some examples we have seen in the past few years imply, “exchanges are entering a period of intense competition.”

For example, the Chicago Mercantile Exchange (CME) launched a product similar to the Chicago Mercantile Exchange to track the performance of its futures contracts.

However, according to our research, although the Chicago Mercantile Exchange (CME) is still a relatively small cryptocurrency derivative market, the success of the Chicago Mercantile Exchange indicates that it is in a leading position.

The original article is from ambcrypto, compiled and organized by the blockchain knight, and the English copyright belongs to the original author. Please contact the editor for the Chinese reprint.