Will The “Spring” of Bitcoin Going Back?

The cryptocurrency market in2018 failed to extend the "crazy journey" at the end of 2017. Bitcoin prices have fallen by 70% since January, and the total market cap of cryptocurrency has fallen from the high of more than $800 billion in early January to the current more than $200 billion.

The speculators began to disperse and the cryptocurrency community entered the winter. However, for the veterans of the community, they always believe that Bitcoin will return to the king, and this confidence is not from the "folly belief" of Bitcoin, nor the self "belief recharge", but because of the real 'Bitcoiner' Have not left yet.

1.Bitcoin miners who invested a lot of money did not leave the Bitcoin market
In the bear market, the same amount of energy, electricity, and resources are used for digital assets mining, and cryptocurrency mining may become less profitable.For example, if the mining difficulty remains the same, but the price of the BTC drops from $20,000 to $8,000, the miner can only sell the BTC obtained from the mining at a price of $8,000, However, thay could earn $20,000 for every bitcoin they generated at the same cost peviously.

Naturally, as bitcoin prices fall, investors in the cryptocurrency market expect the difficulty and power of the bitcoin network to fall, which is directly proportional to Bitcoin's price trend.

However, this is not the case, the computing power of the Bitcoin network has risen exponentially in 2018. Although the price drop caused some miners to be forced to leave, but the miners who believed that bitcoin will return did not stop mining activities. To a certain extent, this has also promoted the development of new and more efficient mining machines by mining machine manufacturers.

The continued investment of Bitcoin miners demonstrates their patience with Bitcoin's future and their firm belief that Bitcoin will eventually return to its previous level in the medium to long term.

2.Hedge funds are optimistic about the future of cryptocurrencies, and a large influx of funds continues to flow in
The cryptocurrency hedge fund has reached a new height in 2018. According to Crypto Fund Research, there are currently 466 funds in the cryptocurrency industry. The launch of these funds is as follows:
Before 2014: 88
2014: 32
2015: 30
2016: 42
2017: 156
2018: So far, 96 crypto funds have been launched this year, and by the end of 2018, we are expected to see 165 funds.

In addition, Pantera Capital, a California-based cryptocurrency investment fund, is seeking to raise up to $175 million in funding for its third cryptocurrency venture capital fund, which has raised more than $70 million now. The blockchain ETF provider and California property management company Reality Shares will launch a $100 million multi-strategy cryptocurrency hedge fund. Social Internet company Line also announced that its subsidiary, Unblock Ventures, is launching a $10 million cryptocurrency fund.

Although the Bitcoin ETF has repeatedly been rejected by SEC, some people even think that this is one of the reasons for the decline in bitcoin prices, but I think it is only a matter of time. Once the ETF is approved, according to the precedents of other ETFs, traditional capital will flow into the cryptocurrency industry in large quantities, which may push the price of Bitcoin currency to rise sharply, and will also promote the overall rise of the cryptocurrency market.