Cailianshe: The two major characteristics of Bitcoin's peak in 2017 have reappeared. Has the bull market in the cryptocurrency circle ended?

Cailian Press (Shanghai editor Liu Rui) reported that Bitcoin, Ethereum and other cryptocurrencies have clearly experienced multiple rounds of heavy losses in the past week. Although the next short-term trend is difficult to predict, if we compare the current round of cryptocurrency trends with the trend of Bitcoin at the end of 2017, we can find two similarities - this may suggest that this round of bull market has come to an end.

First, just like last time, Bitcoin’s peak came almost exactly when institutional adoption reached a major milestone.

This year, Bitcoin reached a record high on April 14, with the price rising to below $65,000, which happened to be the same day as the IPO of virtual currency trading platform Coinbase. Coinbase's IPO is an important milestone in the virtual currency industry.

Bitcoin rises to new high on Coinbase IPO day

Similarly, in 2017, Bitcoin reached its all-time high on December 17. On that day, the Chicago Mercantile Exchange (CME) launched Bitcoin futures, which was also an important milestone at the time, reflecting the increasing acceptance of virtual currencies by institutions.

Another important similarity is that in both rounds, Bitcoin was the first to reach a new high, which then led to a surge in other altcoins. In the previous cycle, Bitcoin reached a new high in December 2017, while other currencies reached new highs in January of the following year. For example, Ripple reached a new high a few days after Bitcoin began to fall from its high.

Bitcoin reached a new high a few days earlier than Ripple in 2017

Likewise, the situation is very similar this time around. Bitcoin reached its new high a month ago, while other currencies peaked a few days later.

In this round of market, Bitcoin reached a new high a few days earlier than Ethereum

This means that there seems to be some pattern in the cycles of cryptocurrencies, where people always enter Bitcoin trading first, then move to other cryptocurrencies or altcoins, and then Bitcoin trading starts to lose momentum.

In addition, if we understand it from another perspective, it can also be understood that there is an acceptance cycle, that is, people in the traditional financial field are slowly attracted by the temptation of soaring cryptocurrencies, so when Bitcoin rises to new highs, major institutional acceptance milestones (futures issuance, initial public offerings, etc.) often appear.