Bitcoin broke through $51000 and reached a new high again. Institutions say that the real power is still ahead

Bitcoin continued to rise in the day, hitting a record high of $49000, 50000 and 51000, with a 24-hour increase of more than 4%. As the world’s largest cryptocurrency, bitcoin is attracting more and more investors around the world, up more than 70% this year. Analysts say that with the support of adequate monetary and fiscal policies, the so-called “re inflation trade” is driving up asset prices related to economic growth, including commodities and cyclical stocks, and driving bond yields higher. Investors are also enjoying a speculative frenzy from cheap stocks to bitcoin. ‘from an emotional point of view, the market is full of bubbles,’ Liz Ann Sanders, chief investment strategist at Carson, said in an interview. According to foreign media, Tesla’s announcement to add $1.5 billion of bitcoin to its balance sheet has become the most obvious catalyst in recent days. As a result, bitcoin prices rose 16% on February 8, the largest one-day increase since the financial market turmoil triggered by the new epidemic in March last year. Tesla also said it would soon start accepting payments for Tesla cars through bitcoin. Optimism has been reinforced again after MasterCard and Bank of New York Mellon Corp., the country’s oldest bank and leading custodian, took action to make cryptocurrency easier for customers. In a blog post last week, MasterCard highlighted the so-called “stable currency,” which usually links its value to the value of another asset, such as the dollar. MasterCard already works with crypto card providers such as WireX and bitpay, but requires that the digital currency be converted into legal tender before processing transaction payments on its network. Mellon bank announced that it will provide services for institutional customers to hold and transfer bitcoin and other cryptocurrencies this year. The final plan is to treat digital currency with other assets such as treasury bonds and technology stocks. The platform for implementing the plan is still in the prototype stage. The bank has been discussing with clients such as asset management managers about the plan to include digital currency in custody. Foreign media also reported on Saturday that Morgan Stanley may add bitcoin to its investment list. Antoni trenchev, executive partner and co-founder of London’s NEXO, one of the largest cryptocurrency lenders, said: “whether it’s musk, MasterCard or Morgan Stanley, the role of emotion and momentum cannot be masked. To many people’s annoyance, the bitcoin Express has already started. ” MicroStrategy Inc., a business intelligence software giant, has doubled its bets on bitcoin. The company said on Tuesday it would sell $600 million in convertible bonds to increase its bitcoin reserves. This is the second time in three months that the company has issued debt to buy bitcoin. Mr. tranchev warned investors that bitcoin prices should be ready to shine after hitting the latest milestone, citing the 30% correction last month as evidence. “Short term volatility is a feature of this bull market and investors should be prepared accordingly,” he said

Leave a Reply

Your email address will not be published. Required fields are marked *