Bitcoin fell below $46000 after being blocked by 50000, highlighting the volatility risk

Source: huitong.com on Sunday (February 14), bitcoin prices once rose to $49694, up 3.57%. Bitcoin is up nearly 70% so far in 2021. Bitcoin and other virtual currencies, once shunned by traditional financial companies for a long time, are increasingly coming into the mainstream as assets and conventional payment instruments. However, analysts cautioned that as the economy recovers, investors should be wary of the risks of bitcoin selling and further increasing volatility. Bitcoin fell below the $46000 mark to $45893 on Monday, down about 6% in the day. Spitting back all the gains on Sunday, further proving the risk of bitcoin’s volatile aftermarket. Institutions and businesses are pushing bitcoin into mainstream assets. Bny Mellon said last week that it had set up a new division to help customers hold, transfer and issue digital assets. Just a few days ago, Elon Musk revealed that Tesla had bought $1.5 billion in cryptocurrency and would soon accept it as a form of payment for Tesla cars. Last Friday, Toronto asset management company purpose investments Inc. The ETF will be the world’s first direct investment in physical settlement of bitcoin, rather than derivatives, giving investors easy and efficient access to the emerging cryptocurrency asset class, according to the statement. Investors can trade bitcoin using futures contracts on the Chicago Mercantile Exchange (CME) derivatives exchange. They can also buy closed-end investment funds, such as bitcoin funds on the Toronto Stock Exchange. Edward Moya, senior market strategist at OANDA, said: “the actions of institutional investors and the US business community show that this trend will not disappear soon. There is still a lot of money going into this trend. ” Miami mayor Francis Suarez also said on Friday that Miami was seeking to introduce bitcoin into its operations, which could bring dividends in attracting technology companies. In January 2021, BlackRock Inc, the world’s largest asset manager, listed bitcoin as a compliant investment for the two funds. MasterCard, a credit card giant, plans to support some cryptocurrencies, which has also boosted bitcoin’s ambition to move into mainstream finance, but many banks are still reluctant to participate. Bitcoin and related sectors rose sharply to guard against the risks of future selling and increased volatility. Riot blockchain, a cryptocurrency miner, Rose 14% on Friday, its highest weekly gain of 110% in 10 years, the biggest weekly gain since 2017. Marathon patent group, a digital asset technology company, rose more than 70% weekly. According to William, chief researcher of okex research, bitcoin positioning is changing in terms of the current market situation. The direct cause of the sharp rise in bitcoin prices in the last round is high net worth and the admission of institutional investors. The deep-seated reason behind the massive purchase of bitcoin by traditional institutions is the change of global macroeconomic situation. On the one hand, affected by the epidemic, the global economic recovery slowed down; on the other hand, many central banks launched extremely loose monetary policies, which pushed up inflation expectations in financial markets. As for bitcoin’s future, William said that institutional investors care about profits. After the epidemic situation is gradually alleviated, with the gradual recovery of the economy, monetary policy will gradually change from loose to moderate tightening. At that time, institutional investors are likely to sell bitcoin. Before that, bitcoin will still maintain an upward trend on the whole. Of course, as the price of bitcoin becomes higher and higher, the market volatility will gradually enlarge. It is not recommended that investors increase excessive leverage. Bitcoin fell below the $47000 mark against the US dollar on Monday, down more than 3% during the day. Spit back all the gains on Sunday. At 11:34 on February 15, Beijing time, bitcoin was trading at US $47213.28 against the US dollar.

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