Bitcoin, pushed by new investors – As Bitcoin continues to reach new heights, no bubbles seem to be mentioned.
With a reputation that is still not very honorable in 2017, the discourse has changed now that financial institutions have entered the game. So this is indeed a different bull market than 4 years ago.
2017, a bull run fueled by Asia
The bull run of 2017 is mainly attributed to 2 types of investors: individual investors and Asian investors. During that year, Asian markets rushed to Bitcoin. The reasons? Depreciation of the yuan, strong appetite for innovation, etc.
In addition, the decade 2010 saw the development of a young and affluent middle class in Asia. So we had new savers and a lack of lucrative investments and Crypto Comeback Pro was not asking for more.
Breakdown of Bitcoin by Currency
The Chinese, Japanese and South Korean authorities had been caught off guard and had seen individuals pouring their savings into the cryptos market. In South Korea and China, the economic situation was very favorable to this craze for Bitcoin. Real estate was relatively expensive, and the shares of large companies in both countries were at their highest levels.
Price of one Bitcoin in 2017 (US dollar) – Source: The Wall Street Journal
History does not repeat itself, but it rhymes.
The fundamental difference between 2017 and now is the price of a bitcoin. At the beginning of 2017, it was around $1,000. This price was psychologically more acceptable to individuals.
One Bitcoin was worth just under a month’s minimum wage in France. It was a price that anyone could afford. Today, a Bitcoin is worth almost 2 years of minimum wage in France. From a purely psychological point of view, this asset is now much harder to buy. In addition, individuals do not always realize that they do not need to own an entire Bitcoin to make a profit.
In the end, those who feed the bull run are those who have the will and the means to buy as many Bitcoins as they want. These are the dozens of companies we’ve been telling you about over the last few months: the famous institutionals, the big fish on Wall Street.