China fund newspaper New Year’s fifth day, the real God of wealth! Bitcoin hit an all-time high, rising above $50000. Bitcoin hit a new high of US $50000 and hit a new record, rising above US $50000 at one time. Bitcoin has been leading the capital market since September 2020, with an increase of nearly 300% in six months, far higher than other major assets. According to the latest data of assetdash, the total market value of bitcoin has surpassed Tesla by more than $890 billion, ranking seventh in the world. Its volume is similar to that of Tencent. With the sharp rise in the price of bitcoin, many well-known people expressed different views. Softbank Chairman Sun Zhengyi said bitcoin would replace gold and increase its unit price to $100000 by 2025. Fitzpatrick, an analyst at Citibank, is more aggressive, believing that the unit price of bitcoin is expected to rise to $318000 by 2021. While many well-known people look at multi bitcoin, some people are extremely bearish on bitcoin. Bill Gates, the former chairman of Microsoft, and Warren Buffet, chairman of Berkshire group, both think bitcoin is worthless. Bitcoin is “digital gold”? Under the influence of the epidemic situation, the global stock market is in turmoil throughout the year. Under this background, bitcoin may become “digital gold”, which has become a kind of opinion of the bulls. Some market views believe that bitcoin will replace gold and become the new king of safe haven assets in the world. At the end of last year, Chris wood, head of global equity strategy at Jeffrey group, a famous investment bank on Wall Street, said that bitcoin was rising continuously, which was a better way to store value than gold. He believed that physical gold investment, which accounted for 50% of the previous portfolio weight, would gradually decrease by 5% in the next few years. The money will be used to invest in bitcoin. According to the report of song Jiaji team of Guosheng securities on December 21, 2020, bitcoin, as an electronic cash system, can not be used as a currency and its bookkeeping platform due to its volatile price and fixed issuance mode of halving in four years. However, its fixed total amount, indestructible, extremely convenient carrying and convenient online trading mode make the distance between bitcoin and digital gold gradually approaching. However, some institutions hold different opinions. According to the report of Zhaowei team of Kaiyuan securities on January 23, 2021, gold and U.S. debt can become high-quality hedge assets because they can reduce their hedging risk preference and have the characteristics of low volatility, high liquidity and large market value. Compared with the former, bitcoin has high volatility, poor liquidity, and very small market value. Moreover, looking back to the historical data, during the period of drastic adjustment of risk assets, bitcoin often falls sharply simultaneously: since 2018, the S & P 500 index of US stock has undergone three drastic adjustments, with a decline of 8.5%, 19.1% and 33.7%; in the same period, bitcoin has fallen by 21.6%, 37.5% and 32.4% respectively. However, although bitcoin does not have the nature of risk aversion, due to the fact that it can perform some general equivalent functions and its quantity is relatively scarce, the price of bitcoin actually implies the expectation of becoming a global “value preserving currency”, which often rises sharply in the stage of “big water release” of mainstream central banks. According to a report, a $150 billion investment arm of Morgan Stanley is considering getting involved in bitcoin as the price surge of the largest cryptocurrency has caught Wall Street’s attention, according to a report. Daniel Pinto, CO president of JPMorgan Chase & Co, recently said JPMorgan “will have to participate” in cryptocurrency. Pinto revealed that the demand of the company’s thousands of investment clients has not shown much interest in the special currency, but he thinks that sentiment will change. “If, over time, an asset class develops and will be used by different asset managers and investors, we will have to be involved,” he explained. There is no demand yet, but I believe there will be some time. Bank of New York Mellon plans to issue, hold and transfer customers’ bitcoin, which marks a key progress in the mainstream of cryptocurrency. MasterCard will begin to allow customers to use the specified cryptocurrency on its platform later in 2021, but does not specify which one. “We are now preparing for the future of encryption and payment, announcing that MasterCard will start supporting selected cryptocurrencies in 2021,” said Raj dhamodharan, executive vice president of digital asset products BlackRock has authorized two of its funds to invest in bitcoin futures, according to a January filing with the securities and Exchange Commission. BlackRock said it could use assets such as bitcoin derivatives under BlackRock strategic income opportunities and BlackRock Global Allocation Fund. “Bull Queen” explains: why look at high bitcoin to $400000? Long before the latest rise in bitcoin, Cathie wood, the head of ark investment management, known as the “bull Queen”, and her team have modeled more companies’ scenarios of converting cash into bitcoin. In an interview with the media recently, wood pointed out that the current level of “hype” against the bitcoin is still at a low level, which means that institutions are likely to be the biggest driver of this round of bitcoin bull market. “Interestingly, if you compare the search trends of people on Google to the price of bitcoin or bitcoin, and compare it to the price of bitcoin itself, you’ll find that by this standard, there’s not much speculation.” According to Google users’ search interest in relevant terms, when bitcoin prices soared to more than $40000 in early January, its “hype” component was only 50% of the peak value of $20000 in 2017, and even dropped to only 25% after January 8, according to a research paper released on Monday by yassine elmandjra, an analyst at ark investment. “We have been expecting institutions to start dabbling in bitcoin and other crypto assets, but mainly bitcoin,” Wood said in an interview with the media. Thanks to the growing interest of institutions in bitcoin, ark investment is optimistic about bitcoin this year. According to the grand vision of ark investment in 2021, if all the constituent companies in the S & P 500 index allocate 1% of their cash to bitcoin, the price of bitcoin may rise by about $40000; if these companies allocate 10% of their cash to bitcoin, the price of the cryptocurrency will rise by $400000 accordingly. J.P. Morgan: investors’ greed has reached a 20-year high! According to a recent report by JPMorgan Chase, global investors’ fear is at its lowest level in 20 years, while greed may be at its peak. Indicators of cross asset investor complacency based on valuations, positions and price dynamics are approaching their highest levels since the bursting of the Internet bubble. There have been signs of quick money making this year, such as bitcoin’s challenge to the $50000 mark, the popularity of marijuana companies, and the war on cheap stocks. Since the new year, the market value of global stock markets has increased by $7 trillion (about 45 trillion yuan), digital currency has risen sharply, the market value has reached 1.4 trillion US dollars, and the issuance of high-yield bonds has also set a record. Although all this has raised concerns that valuations of various types of assets are unlikely to continue, investors continue to invest in the belief that unprecedented monetary and fiscal easing will keep the market hot for some time. In addition, according to data from Bank of America and EPFR global, capital inflows from equity funds amounted to $58 billion in the week ended February 10, with US equity funds and technology equity funds ranking first. The weekly liquidity figures come as global stock markets are approaching record highs, prompting some investors to consider whether to stay in the market or lock in profits. Strong global stimulus measures, low bond yields and optimistic expectations that vaccination is expected to open up major economies have boosted risky assets. Seasonal patterns may also increase the risk of a short-term correction in the stock market. However, Goldman believes that while the overall market is experiencing record gains, some of the consumer cycle factors will remain untapped opportunities.