Bitcoin Hits $10K, Crypto Mining Machine Business Flourishing in China
Bitcoin has climbed back above the psychological $10,000 per bitcoin mark today. The sudden jump in price comes as traders and investors gear up for May halving event as there are only 4 days left.
“Similar to the halving of BCH and BSV, bitcoin will have a certain “holiday atmosphere” when halving, which will drive the price pump. But we can’t expect a vigorous bull to arrive in no time. It is expected that the bull market will come in the fourth quarter.”
Said a crypto tycoon, Bitcoin prices are now up 1500% compared with the halving in 2016. However, unlike 2016’s halving, the volume of derivatives transactions such as contracts has far exceeded the volume of spot transactions. According to CoinMarketCap’s data on August 8, the derivatives exchange in Binance has quadrupled its spot value, and the trading volume of derivatives in OKEx has exceeded the spot value.
Derivatives can be used to add leverage to gambling, but also risk hedging. With the entry of mainstream institutions and financial professionals, the crypto space is no longer the casino as bitcoin prices to keep a relatively stable state. The black swan incident caused by this epidemic is an exception. The comparison between long and short contracts also shows that the holiday sentiment of halving will lead the price to continue to rise moderately.
The rising price of bitcoin is the lifeblood of crypto mining industry
The most affected by the halving is the crypto mining industry. Canaan, the stock price of the only listed Chinese crypto mining maker on NASDAQ, surged 15% with bitcoin’s breaking through, leading the price pump among Chinese stocks. In addition, according to industry news, Bitmain, Whatsminer, and other new large-scale Chinese crypto mining makers have received a large number of orders, and are urgently improving their production capacity. Yesterday, the new Zcash miner released by Bitmain was sold out in a flash.
The number of bitcoin addresses increases, indicating the invasion of new users
Bitcoin halving is like a World Cup: a four-year cycle of “event marketing.”. We can see that the attention to bitcoin on Google, WeChat, Baidu began to increase. Google’s search volume #bitcoin halving, soared by 3350%, and Twitter’s discussion increased by 313% when it again becomes the most searched hashtags on Weibo (Twitter-like media in China).
The number of bitcoin addresses has increased by more than 2 million compared with that last September. Because more user addresses are in the exchange, in fact, the real number of new users will greatly exceed. More users entering the crypto industry is a greater advantage for the industry in the medium and long term.