Bitcoin price exceeds $50000! The market value is close to 1 trillion US dollars

On February 16, according to the bitcoin news network coindesk, the price of bitcoin reached the $50000 mark, with the highest price reaching $50584.85, a record high. As of press release, the price of bitcoin was about $49676, up 3.73% in 24 hours, with a turnover of $56.52 billion and a market value of about $925.41 billion. Bitcoin price trend within one day source: according to bitcoin news network coindesk, as of the time of publication, bitcoin’s positions were $125 million in one hour and $337 million in 24 hours. Why is it rising? Xu Tong, a senior analyst at the fire currency Research Institute, said that the short-term rise and fall of the currency price mainly depends on emotions and news. There is no new news stimulation in recent days, but it can still be attributed to the fear of missing out caused by Tesla’s order. 50000 US dollars is a big resistance level. Bitcoin has also tried again and again before, but the impact has been successful but not yet stabilized. “In view of the current bitcoin market situation, we recommend that you invest in bitcoin carefully.” Li Lianxuan, chief researcher of the AUC cloud Chain Research Institute, told surging journalists. He pointed out that compared with November 2020, the market volume of bitcoin in December 2020 has increased significantly, and the speed of bitcoin price rise has also begun to increase significantly. These signs show that: the main investment force in the market may have structural changes, and the former institutional investors may turn to medium and small investors. Different market forces have a great influence on market sentiment and price trend. In addition, Li Lianxuan also believes that under the dual pressure of economic recovery expectations and high inflation expectations, the market speculates that the world’s major central banks will gradually withdraw from the existing easing policy, “when monetary policy will gradually change from loose to moderate tightening, institutional investors are likely to sell bitcoin, which we need to be alert to.” Driving blockchain concept stocks to soar. When bitcoin repeatedly tests the $50000 level, blockchain concept stocks also soared. As blockchain concept stocks closely related to firecoin.com and oex (formerly okex), firecoin Technology (01611. HK) and auco cloud chain (01499. HK) rose sharply today. As of the close of Hong Kong stock market on February 16, the price of firecoin technology currency was HK $18.88, up 37.41%, while the closing price of auco cloud chain on February 16 was HK $0.6, up 51.90%. In addition, bitcoin mining shares also rose significantly. As of the press release, the first stock of mining machinery, named Jianan Technology (NASDAQ: can), which was listed in the US stock market, rose by 23.59%, while the second stock of mining machinery Yibang International (NASDAQ: Ebon) rose by 15.99%. In fact, as early as late October 2020, the price of bitcoin soared, which led to the rise of relevant blockchain concept stocks. Compared with the closing price on October 30, the price of firecoin technology increased by 436.36%, auco cloud chain increased by 300%, and Jianan technology increased by 498.17%. Will bitcoin compete with gold? Because bitcoin has a total cap of 21 million pieces, it is generally scarce. It has to be produced through “mining” and the production is stable. It is similar to the setting of gold, so bitcoin is also regarded as “digital gold”. Xu Tong pointed out that at present, many traditional industries have significantly increased interest in bitcoin investment, and the preference shift of institutional investment is very obvious. Digital assets are likely to be similar to gold. As an asset, bitcoin and gold have some similarities, such as limited supply, which is regarded as resisting the existence of traditional asset bubbles. Li Lianxuan said that compared with gold, bitcoin still has many shortcomings. First of all, gold is a safe haven asset, and its price fluctuation is small; while bitcoin is still a relatively high-risk asset with great price fluctuation, it cannot become a mature means of wealth storage like gold. Many bitcoin fans claim that “bitcoin can resist inflation, so it is a safe haven asset”. Anti inflation and hedging are two different concepts. Maotai, real estate is also anti inflation, but it is not a safe asset. Secondly, the gold market is compliant, but bitcoin is still facing greater regulatory and legal risks in some countries and regions. Therefore, to a large extent, bitcoin is still classified as an emerging alternative investment, and it is difficult for traditional financial institutions to invest in bitcoin. “If we judge whether the trend of the two types of assets is related, we mainly analyze the market mechanism behind them, rather than” follow the map “. Just as we observe a person who is gaining weight eating potatoes every day, we can draw the conclusion that” eating potatoes will make you fat “is not correct. At present, there is no obvious correlation between bitcoin and gold Li Lianxuan said. He said that at present, bitcoin is indeed in the process of changing its positioning to “digital gold”, but there are still many challenges in terms of price fluctuation and regulatory compliance. At present, there is no absolute confidence that bitcoin will become a real “digital gold”. Both Li Lianxuan and Xu Tong believe that the soaring price of bitcoin does not mean that it can compete with gold. A digital currency researcher told surging journalists that bitcoin was not designed to replace gold, but as an alternative new type of digital asset. Bitcoin and gold will always coexist. As different stored value assets, bitcoin will be known by more people and have a stronger consensus. On December 10, 2020, according to a report by Bloomberg, JPMorgan Chase & Co. said that the rise of cryptocurrency in mainstream finance is at the cost of gold, and it predicts that if investors transfer their disposable income from gold to cryptocurrency, it will pose a threat to the precious metal market in the next few years. Aftermarket: stable or high volatility? Will bitcoin move closer to the traditional financial market and reduce volatility after a sharp rise? Xu Tong believes that the cause of this round of bitcoin bull market is the global central bank’s water release. As a safe haven asset, bitcoin has become a new choice for institutional funds. With the gradual injection of funds by mainstream institutions, the status of bitcoin as “digital gold” will become clearer. The volatility of encryption market is also affected by many factors. At present, it is difficult to say whether it is more stable or more volatile. According to the above digital currency researchers, according to the data on coinmetrics, the overall trend of bitcoin volatility in recent years has not shown a clear regularity, but we can see that the volatility index of bitcoin has been floating a lot. The higher the market value of bitcoin is, the more large mainstream institutions (investment funds, pension funds, etc.) will participate in; however, the price fluctuation of bitcoin is determined by the market heat, policy, user consensus and other factors at that time. “Prices will tend to fluctuate, because bitcoin is still based on speculation and prone to bubbles.” Li Lianxuan said. (surging News) editor: Cheng Xiaolei

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