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The Bitcoin Volatility on the Rise

With the $20,000 mark in sight, Bitcoin is experiencing increased volatility. Last week, Bitcoin prices climbed as high as $19,300 only to suddenly drop down to $16,500 within just 24 hours. Digital asset investors are nervous that the history of 2017 might repeat itself, right after hitting its highest point at the year-end, Bitcoin entered a rapid decline. On the one hand, investors are eying cryptocurrencies’ high volatility with distrust, saying that nothing has changed.

On the virtual asset market, too, as price volatility increases there are again arguments made about a bubble appearing. In short, this position holds that we are seeing a repeat of the Bitcoin price bubble that occurred at the end of 2017. As the Bitcoin price that was on its way to $20,000 tumbled by almost $3,000 in a day, such arguments can also be persuasive for individual investors. On the market, FUD (Fear, Uncertainty, Doubt) is increasing.

However, industry professionals are saying that the atmosphere in today’s virtual asset market is substantially different from 2017. The soaring Bitcoin price of 2017 was, without a doubt, caused by private investors. As Bitcoin gained public interest, this publicity raised the price, which again increased public interest. This feedback loop resulted in explosive growth. This is also where the FOMO (fear of missing out) syndrome comes into play, which is peculiar to individual investors.

The clearest proof of this is the Google search volume. Below is a graph showing the Google search trend for the term ‘Bitcoin’ during the 2017 bubble. At the time, within the span of a few weeks suddenly everyone became aware of Bitcoin, leading the price to explosively grow to $20,000 within just a few months This is a typical result of FOMO syndrome. After individual investors first encountered Bitcoin, they feared they had fallen behind others or would miss an investment opportunity, and rather than first carefully examining the market, they invested immediately. Investments made so rashly without a clear basis are also quick to be withdrawn and once the price starts to fall, this is a factor that accelerates the downtrend. This can also be seen in the bear market following the end of 2017.

However, the market atmosphere today is quite different from back then. First, unlike 2017 the Google search volume for Bitcoin is not drastically increasing. According to blockchain analysis firm Chainalysis, the number of individual investors and market participants who focus on trading rather than investing is actually declining. This suggests that the recent price increase is not based on FOMO syndrome by individual investors. So, what is the cause then? It is the entry of institutional investors.

Grayscale’s Bitcoin trust product (GBTC), which was approved early this year, is siphoning in Bitcoin demand by institutional investors. As of November 25, this product alone had amassed 530,000 BTC. This is because after the US SEC-registered the trust product as an official reporting company in January, institutional investors obtained the reliability and transparency they require. At last, a virtual asset investment product existed that institutional investors could trust and rely on.

In October, Ethereum Trust (ETHE) became the second digital asset trust product officially registered by the US SEC, widening the path for institutional investors to enter the digital asset market. This phenomenon was not present in 2017.

This demand from institutional investors is acting as a cause for raising the price of digital assets such as Bitcoin. As Bitcoin specialist Dr. Julian Hosp concludes: “The money which is currently flowing in is coming mainly from institutional investors with a lot of capital, who have recognized Bitcoin as an asset now to include in their portfolio. […] The market currently resembles more the beginning of 2017 rather than the end”.

While the growth may be created by institutional investors, there are also ways for individual investors to benefit from Haru’s BTC investment products. These include Haru Earn, Haru Earn Plus, and the newly launched Haru Invest (BTC). Haru Earn and Haru Earn Plus are both deposit products. Haru Earn offers 7–8% interest in return for no lockup period, whereas Haru Earn Plus has a lockup period of up to one year but pays out 16% APR every day.

Especially Haru Invest (BTC), which was designed for more aggressive investors, is an investment trust that offers an investment effect normally only possible for institutional investors — turning volatility into profit. The product has a yearly earning target of over 25% with a basic lockup option of three months, which can be extended. Compared to similar services like Grayscale’s Bitcoin Trust or Pantera Capital’s Digital Asset Fund that require an investment amount of at least $20,000 and holding accredited investor credentials, Haru Invest (BTC) stands out with a minimum investment amount of only $10 and no required accreditation. With Haru, individual investors can easily benefit from the bull market and control volatility.

Haru Co-CEO Hugo Lee stated: “Despite the bubble controversy, the 2020 BTC rally is following a different pattern than 2017. As uncertainty grows in the real economy, the BTC price rally is continuing to gain steam due to various factors.” We recommend paying closer attention to Haru’s BTC investment products that allow investors to benefit both from increased volatility and the growth trend.

Haru is a trusted digital asset management platform. We provide up to 16% earn rates for monthly deposits of BTC, ETH, USDT, and Terra KRT. What we offer aims to shift a paradigm of investment — investing in crypto can be stable and comfortable, too. Crypto in, more crypto out. It’s that simple.

Official Website: www.haruinvest.com

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