Across another milestone! How long can bitcoin rise after breaking through $50000?

Source: Li Ailin, author of first finance and economics, crossed another milestone and broke the $50000 mark for the first time. According to coindesk’s real-time data, bitcoin hit a peak of $50584.84, with a market value of $940 billion, before prices fell. Musk’s image as a subvert and innovator is deeply rooted in the hearts of the people, and his bet on bitcoin has played a strong demonstration role. A target price of $100000? In the second week of February, Tesla, MasterCard and the Bank of New York Mellon successively entered bitcoin. The support of mainstream institutions helped the virtual currency rise by nearly 70% year-on-year. On Tuesday, MicroStrategy, a listed company, plans to invest more in bitcoin. According to the micro strategy announcement, the company plans to sell $600 million of convertible bonds to buy more bitcoin, the second time the company has sold bonds to invest in bitcoin in three months. As of February 2, the enterprise software supplier has held nearly 72000 bitcoins, with a market value of $3.6 billion at current prices. Michael Saylor, CEO of micro strategy, is a strong supporter of bitcoin. As early as last August, he spent $250 million in cash to buy more than 21000 bitcoins. According to a person familiar with the matter, cointerpoint global, a Morgan Stanley Investment Company, is studying whether bitcoin can be a suitable choice for investors, with an asset management scale of $150 billion, according to a person familiar with the matter. Antoni trenchev, chief executive of NEXO, a virtual money lending agency, said: “whether musk, MasterCard or Morgan Stanley enter, the current market sentiment and momentum cannot be ignored. Many people are upset that they did not get on the bitcoin express.” He said the rally is not as rapid as it was in December 2020, when bitcoin soared from $20000 to $40000 in just three weeks from mid December to early January this year, compared with six weeks when it rose from $40000 to $50000. He predicted that the next target would be $100000. Timothy Anderson, a New York stock exchange trader, said in an interview with first finance and economics reporter that Musk’s image of subversion and innovator is deeply rooted in the hearts of the people. His bet on bitcoin has played a strong demonstration role, and the market expects more companies to follow suit to buy virtual assets. On whether bitcoin has been accepted by mainstream financial institutions, Anderson said he would consider bitcoin as a mainstream asset unless its production increased and stabilized and was brought under the regulatory framework. (U.S.) Treasury Secretary Yellen has never been a supporter of bitcoin. She has previously publicly said that cryptocurrency has the opportunity to be abused by illegal financing and that the government needs to review it to prevent it from becoming a money laundering tool. ” He said. The imbalance between supply and demand continues in 2021, and many investors believe that the Fed’s unlimited easing has contributed to the soaring price of bitcoin and triggered the asset bubble. James Bullard, chairman of the St. Louis fed, said in a media interview on Tuesday that the widespread trading of non-governmental cryptocurrencies by investors was worrying, but he did not believe that the growing interest in bitcoin would pose a serious threat to the US dollar’s position as an international reserve currency. “Currency competition has a long history, but investors prefer safe, stable and reserve value currencies and tend to invest in such currencies.” Brad said. So, after a 1.8-fold surge in the past three months, can bitcoin’s strength continue? NYSE trader Anderson said bitcoin prices could easily be reversed. “Just like in early January, bitcoin fell from $40000 to around $32000 in just three days, with a 20% correction.” He said. Brian Melville, head of strategy at Cumberland, a virtual currency trading house, said $50000 was an important psychological gateway to the market and a result of supply and demand. The agency estimates that from August to December last year, bitcoin production was about 150000 pieces, and the purchase amount was about 359000 pieces in the same period. “This imbalance between supply and demand will continue in 2021, and the relationship between supply and demand is a key indicator of price trend,” he said Peter Tuchman, a trader on the NYSE, told first finance that the lack of short tools in the market made bitcoin a one-sided up market. Bitcoin’s supply is limited, but demand is rising. Investors who hold bitcoin are not willing to sell their assets, which will further push up the price. NEXO CEO tranchev warned investors that short-term volatility is a major feature of the bull market, and investors should be prepared for price retracement.

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