Overview of the Crypto market in the second quarter of 2021

The second quarter of 2021 is one of the quarters with the most events in the history of the crypto industry.

The second quarter of 2021 is one of the quarters with the most events in the history of the crypto industry.

With the direct listing of Coinbase (COIN) on April 14, 2021, the company’s employees opened champagne to celebrate, and the first half of the second quarter of this year was full of celebrations . Bitcoin hit an all-time high (ATH) of more than $60,000, and cryptocurrencies have received more attention than ever before. Institutional investors and banks have announced that they will be involved in the field of digital assets. They have invested a large amount of equity capital and launched new measures to attract customers. Even State Street, the second oldest bank in the United States, which manages $3.1 trillion in assets, announced in early April that it would establish a crypto-asset trading platform.

We also saw that after Tesla founder Elon Musk called himself Dogefather on “Saturday Night Live” (SNL, American variety show), it triggered DOGE The speculative frenzy of (Dogecoin) brought its price to $0.74. Other meme coins such as ASS, SHIBA and CUMMIES have also received attention, although these meme coins have rarely received mainstream media attention before. In May, Mark Zuckerberg even announced that he named his two pet goats Max and Bitcoin. This may be suggesting to the world that he is Bitcoin. Maximizer.

Overview of the Crypto market in the second quarter of 2021

Above: After the direct listing of Coinbase, the price trend of its stock COIN has fallen by 38%.

Bitcoin in Q2 2021

Although the price of Bitcoin rose by more than 10% in early April this year, it fell by 9% that month. The sudden drop in the value of Bitcoin should have triggered some red flags, but the market ignored the warning signs of major corrections or market fatigue, because Bitcoin had seen a 6-month continuous rise, which was the first time since 2012. Looking back, there are indeed signs of market fatigue. In the direct listing of Coinbase, its stock price fell by 20% in the first few days of trading, and Tesla also announced that for money management reasons, they have sold 10% of their Bitcoin position. Nonetheless, as other parts of the cryptocurrency market diverge from Bitcoin’s price performance, all signs still point to a bull market. In April, ETH rose by 44%, DOGE continued to rise by 463%, and ETC also rose by 146%.

Overview of the Crypto market in the second quarter of 2021

Above: The monthly ups and downs of each major crypto asset this year and the year-to-date (as of June 30) increase/decrease (the last column).

In mid-May, the price of Bitcoin began to reverse and fell by 38%, which was the third worst month for Bitcoin in history. This finally put an end to this rally like the 2017 bull market.

Overview of the Crypto market in the second quarter of 2021

Above: The blue line represents the performance of Bitcoin price from April 2015 to December 2017, and the orange line represents the performance of Bitcoin price from December 2018 to June 2021.

This is not even like the bull market in 2013, as investors found themselves in uncharted waters. Before that, the top of a four-year cycle has never been so flat, and there has never been a bull market mid-term reversal so severe (Note: Bitcoin halves every four years, and the market tends to believe that there will be a bull market after the halving) .

On the occasion of FUD (fear, uncertainty and doubt) in the market, May also brought a series of negative news events, including Tesla’s suspension of accepting Bitcoin payments on the grounds of ESG (environmental, social and corporate governance) concerns . Market participants began to wonder whether this attack on Bitcoin was premeditated. This has led mainstream media to frequently report on Bitcoin’s coal use and its impact on global warming. Even Pope Francis (the 266th Pope of the Catholic Church) also commented on the dangers of this technology based on “highly polluting fossil fuels.” Most importantly, Tesla’s statement triggered Musk’s destructive remarks on Bitcoin, even though he agreed that Bitcoin can incentivize renewable energy.

Overview of the Crypto market in the second quarter of 2021

Above: Musk’s tweets and the price of Bitcoin. Source: Travis Kling

At the same time, Bitcoin supporters also made some remarks to refute ESG concerns, but they were basically ignored by the mainstream media. For example, Michael Saylor (Michael Saylor, CEO of MicroStrategy, Bitcoin supporter) even supports the North American Bitcoin Mining Council (North American Bitcoin Mining Council) to collect data on the use of renewable energy in Bitcoin mining. When Bitcoin seemed to be moving in the right direction of ESG, public protests quickly ceased in mid-June. The Bitcoin Mining Committee reported that in the second quarter of 2021, the energy consumption of Bitcoin mining only accounted for 0.117% of the world’s total energy consumption . See below:

Overview of the Crypto market in the second quarter of 2021

Above: In the second quarter of this year, global Bitcoin mining energy consumption only accounted for 0.117% of global energy consumption. Source: Bitcoin Mining Council

In the United States, the industry has also experienced one of the busiest months of regulation . According to reports, the U.S. Senate Banking Committee urges the newly appointed head of the Office of the Comptroller of the Currency (OCC) to review past rulings in favor of cryptocurrencies. The OCC, FDIC (Federal Deposit Insurance Corporation) and the Federal Reserve are establishing a cross-departmental cryptocurrency policy team. Negotiate. As the Federal Banking Regulatory Agency, the FDIC issued a request for information on the use of cryptocurrency to the bank. According to reports, the US Internal Revenue Service is cracking down on cryptocurrency tax evasion. The IRS also investigated Binance, the world’s largest exchange, together with the Justice Department.

In addition, New York State introduced a Senate bill to suspend Bitcoin mining for three years while assessing environmental impact. The U.S. Department of the Treasury requires encrypted transfers of more than $10,000 to be reported to the U.S. Internal Revenue Service. US Secretary of the Treasury Janet Yellen (Janet Yellen) said that the US cryptocurrency regulatory framework is not complete and promotes the establishment of a new framework. US Securities and Exchange Commission (SEC) Chairman Gary Gensler (Gary Gensler) said that cryptocurrency exchanges need more investor protection. In addition, the most destructive may be a large number of fake news and unsubstantiated statements, such as the picture below:

Overview of the Crypto market in the second quarter of 2021

Fake news in the above tweet: “The U.S. Treasury Department will fine several financial institutions involved in cryptocurrency money laundering.”

In addition, more and more institutions are adopting Bitcoin, which may mean that macroeconomics has played a role in the recent sell-off . On May 12, 2021, the US Consumer Price Index (CPI) showed an increase of 4.2% over the same period last year, which is the highest level since September 2008. In view of the signs of overheating in the market, although the poor US employment data eased the signs, the minutes of the Fed’s meeting suggested that they are beginning to consider reducing the scale of debt purchases. This resulted in a +9 basis point increase in the real dollar yield, although the traditional financial market remained relatively calm. The market already knows that due to the low base effect of COVID-19, inflation figures are high.

However, Bitcoin , which is at the end of the risk curve of traditional institutional investors, has seen a massive sell-off. In the following month, the CPI even reached a higher 5%, but this did not cause the market to react. As expected, the Fed will wait patiently for economic data to decide whether to start reducing bond purchases in the first quarter of 2022. Concerns about reducing the size of debt purchases subsided, but the price of Bitcoin failed to rise.

In China, Liu He, Vice Premier of the State Council and Director of the Financial Committee of the State Council, announced a special campaign to crack down on cryptocurrency mining and trading. This is nothing new. China has banned securities companies from engaging in Bitcoin transactions since 2013 and also banned Bitcoin transactions in 2017. However, no person at the director level of the Financial Stability and Development Commission of the State Council has announced this news before. Bitcoin mining and trading have never been specifically mentioned. Xinhua News Agency also published an article citing a series of cryptocurrency-related scams. 1,100 people were arrested for laundering money through cryptocurrency. The market believes this is due to social stability, especially before the 100th anniversary of the party’s founding on July 1.

This caused the Chinese search engine Baidu to delete Binance, Huobi and OKEx. The social media platform Weibo blocked major exchanges and related KOLs. Bitcoin market data has also been deleted from securities trading platforms such as Futu and Tiger Securities supported by Tencent. In addition, these crypto companies emphasized that their plans to launch cryptocurrency trading services will target customers registered outside of China. The major crypto exchanges Huobi and OKEx reduced leveraged trading from a maximum of 125 times to less than 5 times. In addition, new customers will not be able to use the leveraged trading function.

Overview of the Crypto market in the second quarter of 2021

Source: Twitter @WuBlockchain

In terms of Bitcoin mining, Inner Mongolia is the first region to comply with relevant policies, followed by other more important mining areas, such as Xinjiang (the most important mining area in the dry season). As miners packed up, from mid-May to the end of the second quarter, the total Bitcoin hash rate (a measure of the computing power of the Bitcoin network) dropped by half , as shown in the figure below. Although Bitcoin’s hash rate has not recovered from the largest sustained decline, the worst may have passed in terms of the impact of China’s crackdown on Bitcoin mining. We expect its hash rate will be restored this year, as miners will find other sources of electricity and restart operations . According to reports, many miners from Inner Mongolia, Xinjiang, Qinghai and Sichuan are moving to Kazakhstan, Texas and Norway.

Overview of the Crypto market in the second quarter of 2021

Above: The change in the total hash rate (computing power) of the Bitcoin network since June 2018.

Just as the noise surrounding the environmental problems of Bitcoin mining quickly disappeared at the end of June, concerns about mining closures in China also suddenly disappeared. In general, these are the net long-term benefits of Bitcoin, because nothing that stifles it will only make it stronger. In fact, as the world becomes more environmentally friendly and no institutional investors want to conflict with the ESG movement, Bitcoin will need to switch to renewable energy in order to gain global adoption. In addition, the erroneous claim that Bitcoin is a “financial weapon of China” or that Bitcoin poses a threat to US national security can finally be calmed down, because Bitcoin’s hash rate (computing power) will be more evenly distributed around the world.

At the end of the second quarter, El Salvador became the first country in the world to adopt Bitcoin as its legal currency to achieve de-dollarization and reduce remittance costs. The government also announced an airdrop of $30 to all adults through its digital wallet. Although the global penetration rate of Bitcoin is only about 2%, the survey data of the Salvadoran Chamber of Commerce shows that 21-25% of people said they would use Bitcoin (see the figure below). Although this has no substantial impact on the price of Bitcoin, it is a global step towards wider adoption of Bitcoin. In addition, it may be the first of several countries to adopt Bitcoin, because Paraguay has also announced a bill to make Bitcoin legal tender.

Overview of the Crypto market in the second quarter of 2021

Above: According to survey data from the Salvadoran Chamber of Commerce, 21-25% of people said they would use Bitcoin. Credit: Steve Hanke

Bitcoin market

On the market side, the derivatives market was hit hard this quarter. The market started off strongly, with ETH hitting USD 3,000 on May 3, and on the following day, the open interest of ETH call options with a strike price of USD 5,000 reached USD 246 million. However, at the end of the second quarter, considering the large number of liquidations, the open interest of Bitcoin futures returned to the level at the beginning of this year .

Overview of the Crypto market in the second quarter of 2021

Above: Changes in open BTC futures contracts on major exchanges.

Compared with the peak on April 14, Bitcoin’s open interest decreased by 56% at the end of the second quarter. The first large-scale liquidation took place on April 18, when a $9.3 billion long position was liquidated (mostly from Binance), but the market subsequently recovered. Despite the heavy losses in April, on May 19, the liquidation reached US$7.6 billion (mainly from Huobi, Bybit and OKEx), and the market collapsed further as people were forced to sell.

Overview of the Crypto market in the second quarter of 2021

Above: The liquidation of Bitcoin contracts. Source: bybt.com

Despite the large-scale liquidation and subsequent spot sell-offs, during the sell-off period, large Bitcoin players (holding 100-1,000 BTC) are actually firmly holding or hoarding Bitcoin , as shown in the figure below: the gray line in the figure It indicates the Bitcoin price trend in the second quarter of this year, and the blue line indicates the total number of BTC held by large households holding 100-1000 BTC in the second quarter.

Overview of the Crypto market in the second quarter of 2021

The above picture shows that the Bitcoin whale is firmly holding Bitcoin. Image source: Woonomic, Glassnode

Traders in the US time zone also seem to be more pessimistic than traders in Asia, which is the opposite of the 90-day cycle before mid-May. See below:

Overview of the Crypto market in the second quarter of 2021

Winners of Q2 2021

Dogecoin (+325%), ETC (+268%), XRP (+12%) and ETH (+3%) all performed well in the second quarter of this year.

Overview of the Crypto market in the second quarter of 2021

Above: The performance of crypto assets in the second quarter of this year, with DOGE (top gray line) and ETC (second blue line) performing the best

The performance of DOGE (Dogecoin) benefited from its main supporter Elon Musk, who mentioned “DOGE” in no less than 13 tweets. For his 57 million fans, Musk also tweeted that he is “working with the developers of Doge to improve the efficiency of system transactions.” This puzzled most crypto investors because they noticed that Doge hadn’t any progress.

However, DOGE is very strongly influenced by social media. On May 8, when the SNL show Musk claimed to be the “father of Dogecoin” aired, its price rose to $0.74. Since the beginning of May, the price of DOGE has risen to 12 times, and then fell back to “only” 5 times at the end of the second quarter. In addition, Coinbase also listed DOGE on June 3, and listed Ethereum-based “dog shit coin” SHIBA on June 15.

However, even before the SNL program aired, DOGE rose by 500% in a week in mid-April, almost throwing Binance Coin (BNB) aside. Before DOGE listed on Coinbase, the moderator of the r/wallstreetbets section on Reddit lifted the ban on cryptocurrencies in mid-April, allowing people to discuss BTC, ETH, and DOGE in this section. In less than 24 hours, they regretted the decision and reiterated the cryptocurrency ban on the sector on Reddit. The subsequent surge in DOGE demonstrated the “power of the people.” Although at the end of the second quarter, DOGE’s price has fallen by 66% from its historical high, but DOGE’s outstanding performance in the second quarter shows that its meme influence is still strong .

Overview of the Crypto market in the second quarter of 2021

Above: Among the many sub-sections involving cryptocurrencies on Reddit, the number of subscribers to the r/dogecoin sub-section ranks third, second only to r/CryptoCurrency and r/Bitcoin

Ethereum Classic ( ETC ) also showed strong growth in the second quarter of this year. ETC was separated from Ethereum after a controversial Ethereum hard fork (also known as The DAO fork) in July 2017. On May 7, the 24-hour trading volume of ETC was US$55 billion, but its market value was only US$17 billion. After Messari’s review, the net trading volume of ETC on the exchange was only US$414 million, which indicates that there may be a lot of false trading volume on ETC. Nevertheless, ETC made several status updates in the second quarter, released a roadmap and budget for 2021, and introduced new software versions and network upgrades.

After rising 164% in the first quarter of 2021, XRP continued to outperform the market in the second quarter (up 12%). After the U.S. Securities and Exchange Commission (SEC) took enforcement action against Ripple in December 2020, its price dropped by 30%. Stuart Alderoty, Ripple’s general counsel, insisted that the SEC deliberately maintains regulatory uncertainty and that XRP is listed as a separate security while Bitcoin and ETH are not listed as securities, which is unfair.

Overview of the Crypto market in the second quarter of 2021

Finally, ETH rose by 13% in the second quarter. Ethereum performed strongly in the first half of the first quarter of this year, during which there were discussions about the “supercycle” (a period of sustained long-term growth) and the “Flippening” (the market value of Ethereum surpassed Bitcoin). As of May 11, options platform Deribit witnessed the notional value of ETH call options with a strike price of US$5,000 reaching US$331 million. Cryptocurrencies like good narratives, and Ethereum has many good narratives:

The Ethereum L2s expansion solution has just begun, with Polygon (Ethereum sidechain) leading this trend; Ethereum achieved the “Berlin” upgrade on April 15th, and the upcoming “London” upgrade will achieve EIP- The 1559 proposal is expected to solve the pain of Ethereum’s high transaction fees (the proposal will make transaction fees more predictable), and the supply of ETH is also expected to become deflationary. ETH has not received the ESG concerns and criticism that Bitcoin has encountered, because Ethereum is moving towards Eth2.0 based on the PoS (Proof of Stake) consensus mechanism. In addition, the on-chain activity of Ethereum-based decentralized finance (DeFi) has also reached a new high.

However, in the Bitcoin sell-off, gravity comes into play, and every token is related, and this time is no exception. Although the performance of ETH deviated from Bitcoin around mid-April, it dropped by 16% in June, and the overall performance is still better than Bitcoin.

Overview of the Crypto market in the second quarter of 2021

Ethereum’s market share (based on market capitalization) is still second only to Bitcoin, but it is rising, while the market share of DOGE, ETC, and XRP in the crypto sector is still small. In the second quarter of this year, Bitcoin’s market share dominance in the crypto sector dropped from 79% to 65%, as shown in the figure below:

Overview of the Crypto market in the second quarter of 2021

Underperforming assets in Q2 2021

In addition to Bitcoin (-39%), Dash (-44%), Stellar (-31%) and Bitcoin SV (-30%) are the main underperforming assets.

Dash was originally launched as a fork of Bitcoin, but it once had a strong marketing narrative because it focused on payment use cases. Dash released some software and on-chain upgrades in the second quarter of this year, and these upgrades will accumulate in the hard fork upgrade on July 15. Dash’s poor performance in the second quarter can be attributed to its strong growth of 109% in February 2021.

As a fork of the Ripple protocol, Stellar (XLM) has performed two major network upgrades. Although the performance of XRP and XLM in the first quarter of this year is closely related, the performance of XLM in the second quarter was inferior. This may indicate the importance of community size during the market sell-off period.

Bitcoin SV (BSV) is a hard fork of Bitcoin Cash (BCH). The creators of BSV believe that the BSV chain strictly adheres to Satoshi Nakamoto’s original Bitcoin client. After rising 28% in the first quarter of 2021, BSV continued to perform poorly in the second quarter. BSV made no major announcements or upgrades in the second quarter. However, Craig Wright (who claims to be Satoshi Nakamoto), the main founder of BSV, has chosen legal action in April to require bitcoin.org to remove the Bitcoin white paper from the site. The site did not defend itself to protect the anonymity of its founder.

Bitcoin’s dominance

On May 18, Bitcoin’s market dominance fell to 40%. On this day, $7.6 billion in Bitcoin contract liquidation occurred, reaching the highest level since July 2018. The price of Bitcoin reached a peak of $64,654 on April 14, while the total market value of other cryptocurrencies peaked on May 11, one month later. This is similar to the situation in December 2017, when Bitcoin’s market value peaked one month earlier than other cryptocurrencies.

Overview of the Crypto market in the second quarter of 2021

Above: Since January 2013, the ratio of Bitcoin’s market value (orange area) to the total market value of other cryptocurrencies (black area).

Supervision

April

  • Stablecoin issuer Paxos obtained a U.S. trust license through the Office of the U.S. Currency Inspector General (OCC), becoming the third federally regulated crypto bank. The company also raised 300 million U.S. dollars, valued at 2.4 billion U.S. dollars
  • Canada approved 3 Ethereum ETFs (Exchange Traded Funds)
  • The investment arm of the European Union hired Goldman Sachs, Banco Santander and Societe Generale to sell 100 million euro bonds registered on the Ethereum network. Previously, Santander and Societe Generale had issued bonds on the Ethereum blockchain, but this is the first bond issuance by Goldman Sachs;
  • Appointment: Gary Gensler, who had taken a blockchain course at MIT, was appointed as the new chairman of the SEC, former OCC chief Brian Brooks was appointed as the CEO of Binance USA, and former CFTC chairman Chris Giancarlo was appointed as crypto Board member of BlockFi, a currency lending platform.

May

  • China has reiterated that it will crack down on Bitcoin mining and cryptocurrency transactions, which has led to a large number of miners leaving and a decline in the computing power of the Bitcoin network.

June

  • The Basel committee, the global banking regulator, urges the strictest capital rules for cryptocurrencies. This is no different from a DeFi agreement that requires at least a full mortgage of the loan. In the long term, regulatory transparency should help the institutional adoption of cryptocurrencies.
  • Brazil launched the first Bitcoin ETF in Latin America. QR Capital’s ETF was approved earlier this year in March 2021.

Institutional and social adoption

April

  • State Street, the second-oldest US bank with $3 trillion in assets under management, announced that it will launch a trading platform and may conduct transactions on that platform;
  • In April of this year, Germany proposed and approved the Fund Location Act (Fund Location Act) to allow special funds to invest up to 20% of their portfolios in cryptocurrencies. The law will take effect on July 1, 2021, and its potential market value is as high as 415 billion U.S. dollars;
  • Venmo has launched a cryptocurrency purchase service, but currently does not allow cryptocurrency to be withdrawn to other third-party platforms;
  • Morgan Stanley submits documents to allow private wealth clients to use Bitcoin;
  • CI Global Asset Management launched the first Bitcoin mutual fund in North America, with an asset management scale of USD 230 billion;
  • New York Digital Investment Group (NYDIG) raised $100 million, mainly from insurance companies such as Liberty Mutual Insurance and Starr Insurance. This is in addition to the US$200 million raised in the previous month. NYDIG is a Bitcoin platform and a subsidiary of Stone Ridge, which is an alternative asset management company valued at USD 10 billion.
  • Wealthfront, Bank of America, and Goldman Sachs announced that they will provide encryption products in the future;
  • Coinbase is listed on NASDAQ;
  • The Turkish stock exchange Thodex was accused of fraud and froze customers’ funds of US$2 billion. Just a week ago, the Central Bank of Turkey also banned cryptocurrencies as a means of payment. In March 2021, Turkey announced that the country’s inflation rate was 16%, but economists said the real figure was even higher.

May

  • Ray Dalio, the founder of Bridgewater Fund, stated that he holds Bitcoin. He said, “I like this asset diversification. It should be part of any investment portfolio, and it has its advantages.” Well-known radical trader Karl Icahn ( Carl Icahn) stated that he hopes to enter the cryptocurrency field on a large scale.
  • Citibank (Citibank), Millennium Bank (Millennium) and Point 72 announced that they will enter this field;
  • MoneyGram plans to allow users to buy bitcoins in its 12,000 retail stores in the United States; New York Digital Investment Group (NYDIG) has established a partnership with payment solution provider Fidelity National Information Services (FIS), which will enable data Hundreds of U.S. banks allow retail investors to hold and trade Bitcoin. This may reach 24 million users.
  • Framework Ventures raised a 100 million U.S. dollar cryptocurrency venture capital fund;
  • After negotiations on Galaxy Digital’s acquisition of PayPal broke down in December last year, Galaxy Digita acquired crypto asset custody company BitGo for US$1.2 billion.
  • Tether disclosed the breakdown of their reserves, claiming that 76% of their reserves are cash and cash equivalents;
  • PayPal and Venmo plans to allow cryptocurrency to be withdrawn to third-party locations;
  • The Bitcoin “laser eye” wave swept Twitter, including Paris Hilton (one of the heirs of the Hilton Group), Tom Brady (American football superstar) and U.S. Senator Cynthia Lummis.

June

  • Standard Chartered Bank (Standard Chartered Bank) and the crypto asset trading platform OSL announced the establishment of a crypto exchange called Zodia. In December of last year, Standard Chartered Bank announced the release of Zodia, one of the world’s largest custodians, Northern Trust, an encrypted digital currency custody solution.
  • BC Group (the parent company of OSL) has raised US$70 million from Singapore’s sovereign wealth fund, Singapore Government Investment Corporation (GIC), with an asset under management of US$488 billion. Previously, Morgan Stanley assisted the BC Group in financing US$90 million in January this year.
  • El Salvador designated Bitcoin as the country’s legal tender, and Paraguay also announced a bill. According to reports, El Salvador is negotiating with the International Monetary Fund (IMF) on a financing agreement of nearly $1 billion and has assured the IMF that it will not give up the U.S. dollar.
  • Andreessen Horowitz raised a $2.2 billion crypto venture fund. Blockchain Capital’s venture fund raised 300 million US dollars, mainly from Visa and PayPal.
  • TP ICAP, the world’s largest inter-dealer broker, plans to jointly launch an encrypted trading platform with Fidelity and Zodia. Zodia is a joint venture between Standard Chartered Bank and OSL.
  • Interactive Brokers plans to offer cryptocurrency trading before the end of the summer of 2021.
  • DeFi lending platforms Compound Finance and Coinbase offer 4% interest rate USD products.
  • Citigroup launched an encryption business to provide digital assets to private wealth clients.

Eye-catching transaction

April

  • The gaming giant Nexon bought $100 million worth of Bitcoin on its balance sheet. They also own Korbit, a South Korean cryptocurrency exchange.
  • Tesla sold $272 million in bitcoins, which accounted for 10% of its bitcoin holdings.
  • Microstrategy purchases 15 million USD worth of Bitcoin.

May

  • Globant IT (market capitalization of US$9 billion) disclosed that it purchased US$500,000 worth of Bitcoin in the first quarter of 2021.
  • MicroStrategy purchased $25 million worth of Bitcoin.

June

  • MicroStrategy raised $500 million through secured debt and then purchased $489 million in Bitcoin.
  • Soros Fund Management started trading Bitcoin.

to sum up

As the Bitcoin indicator is still in the middle of a cycle, the sharp sell-off in the second quarter surprised many investors. If the market does not recover from here, it is expected to be a mild bear market, because this round of rise is quite mild – only 3.2 times higher than the previous historical high of Bitcoin, not 20 times. In addition, during the 2018 bear market, investors remained bullish in the first half of 2018. However, this time, market sentiment immediately turned into a bear market, which may indicate that investors want to preempt any risks before the bear market. Many investors have been hit by the top rallies in 2017 and 2013 and the subsequent deep and prolonged bear market, so they may have quickly pulled the trigger to sell. The conclusion we can draw is that perhaps due to the wider institutional adoption of Bitcoin, this round of rise is unprecedented.

The Bitcoin and cryptocurrency industries have never encountered fierce attacks from all corners before. Endless “bans” and concerns about ESG are rising at the same time, although these claims have been the long-term source of Bitcoin FUD. However, the two biggest obstacles facing BTC in the second quarter of 2021 are the two biggest driving forces facing ETH-PoS makes it more difficult to locate and censor miners geographically, and no institutional investors are willing to show Disrespect for ESG narratives. Although these FUD narratives have been resolved, and even some are forged, the Bitcoin and crypto communities will continue to take steps to evolve the ecosystem more powerfully.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/overview-of-the-crypto-market-in-the-second-quarter-of-2021/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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