Money circle is boiling again! Bitcoin broke a record $31000, with a total market value of $550 billion, a 10-year increase of more than 12.4 million times

At the beginning of 2021, the crazy bitcoin has made history again! Money circle is boiling again! On the evening of January 2, 2021, Beijing time, bitcoin reached the $30000 mark for the first time in history. In a short period of more than 10 days, bitcoin has continuously broken through multiple integer levels, and tonight it has broken through 30000 US dollars and 31000 US dollars in one breath. Since 2020, bitcoin has risen wildly, with a cumulative increase of more than 300%. Not only has bitcoin reached the $30000 mark for the first time in history, but also has been rising and will rise in the future. It is worth mentioning that other cryptocurrencies also rose sharply tonight, with letcoin up 4.06% and Ethereum up 3.40%. However, investors are more concerned about what forces are driving the current round of bitcoin’s rise? What about the sustainability of this rally? Bitcoin’s 24-hour stock burst of 2.5 billion yuan. Three years later, bitcoin finally ushered in a bull market. According to bitstamp platform, as of 22:00 on January 2, bitcoin soared all the way, breaking through the $30000 barrier, to $31500 / piece (more than 200000 yuan). The total market value of bitcoin is more than 550 billion US dollars, about 3.575 trillion yuan, which is 1 trillion yuan higher than Maotai (2.5 trillion yuan in market value) of Guizhou, equivalent to two industrial and commercial banks. Bitcoin has been in the midst of a dramatic rise in 2020, becoming an asset that will definitely benefit from the epidemic. Bitcoin is now more than 584% higher than it was then, after hitting a new low of $4705 on March 13. Missing the bull market is not the worst. The air force that makes the contract is Aihong. According to bitcoin home.com, 36392 people’s $388 million (about 2.5 billion yuan) of funds burst in the past 24 hours, and 172 million dollars (about 1.117 billion yuan) in one hour. The air force didn’t expect that bitcoin had hit new highs in recent days, but it didn’t mean to call back. According to the China Securities Journal, Gu Yanxi, a practitioner in the blockchain and crypto digital asset industry, said that it is very easy to leverage bitcoin transactions at present, and the proportion of leverage can be very large, and the risk may be greater. In such a market environment, we need to keep sober to avoid taking on big losses. Suzie, chief experience officer of virtual currency MXC exchange, also does not recommend that novices play with leveraged bitcoin futures contracts. “In the case of high leverage, the risk of contract explosion is great. If 10 times of leverage is used, 10% of the market fluctuation will burst, and 20 times of leverage will lead to 5% market fluctuation. The novice is not familiar with the operation of the contract, the grasp of the market, the position control and the stop loss strategy. The operation of such a high-risk transaction, the risk of exposure is great. ” According to the economic observer, Yu Jianing, chairman of the block chain special committee of China Communications Industry Association and President of Huo coin University, told reporters that since the birth of bitcoin, the price fluctuation has been relatively fierce, and generally speaking, it has experienced two big ups and downs. One was that in November 2013, the price of bitcoin reached nearly US $1000, but in September 2015, it fell all the way to US $200; the other was in March 2017, the price of bitcoin exceeded the price of one ounce of gold for the first time, and reached a historical high of $19875 in December of that year, and then entered the trough of nearly three years, and the price was as low as $3000 at the end of 2018. According to public information, bitcoin was born in 2009, and its price was only generated in 2010. The initial price of bitcoin was about $0.0025. If you compare it to $310 million tonight, the price of bitcoin has risen more than 12.4 million times in 10 years. Why is bitcoin soaring recently? According to the economic observer, Yu Jianing, chairman of the Special Committee on blockchain of China Communications Industry Association and President of Huoyuan University, summed up three points for reporters. First, under the influence of the epidemic, the global central banks have released water, resulting in increased demand for assets to fight inflation. “In order to stabilize the market and economy, the scale of fiscal stimulus of central banks is unprecedented, and the two houses of Congress of the United States passed the latest round of stimulus plan with a scale of 900 billion US dollars. Since the outbreak of the epidemic, the U.S. government has launched three rounds of fiscal stimulus programs totaling about 3 trillion US dollars. Under this loose monetary policy, global inflation expectations have risen and market demand for anti inflation assets has increased significantly, “Yu explained. Why bitcoin has been chosen by investors as one of the tools to fight inflation, Xu Weihong, chief economist of Yongxing securities, has recently publicly explained: “the economic cycle, market cycle, inventory cycle, sudden epidemic situation and other real economic conditions have little to do with the trading price of bitcoin. At most, it has something to do with the amount of money in the market.” It should be pointed out that bitcoin is different from some virtual currencies with unlimited supply. It is as scarce as gold, and the total number is set to be 21 million. With the growth of the number of bitcoin born, it is more difficult to mine and obtain bitcoin. In 2020, the production of bitcoin will be halved for the third time, and the reward for digging out a block will be reduced from 12.5 bitcoin to 6.25 bitcoin. According to coinmarketcap, the global supply of bitcoin has exceeded 18.58 million by the end of December 30, 2020. Yu Jianing also believes that “the players behind bitcoin have changed, and they have become the main institutions on Wall Street. Blockchain digital assets such as bitcoin have been widely concerned by mainstream investment institutions, and have begun to accelerate the integration with the mainstream financial system. ” Yu Jianing, for example, global head fund company Fidelity Investment issued a report in October 2020, recommending investors to hold 5% of the total amount of the portfolio; PayPal, an online payment giant with more than 300 million users, bought a large amount of bitcoin, and announced in November 2020 that it would provide bitcoin Trading services to qualified U.S. customers; DBS, Singapore’s DBS, pushed institutional investors Bitcoin and other digital asset trading services are provided; MicroStrategy, a US listed company and business intelligence software provider, officially takes bitcoin investment as one of the company’s businesses, and currently holds more than $1.1 billion of bitcoin; the total scale of digital asset management of gray trust, a well-known digital asset trust, is close to US $20 billion. “These examples represent fundamental changes in the digital asset market.” Yu Jianing stressed. In addition, at present, the trust products of gray company do not support the redemption of virtual cryptocurrency. According to golden finance and economics, as of the first half of 2020, the number of bitcoin held by grayscale company has exceeded 400000. If investors want to withdraw, they can sell Trust shares in the secondary market, and gray company can earn handling fees and management fees. Some people think that the existence of gray-scale companies has locked in a lot of bitcoin, further strengthening the scarcity of bitcoin, while investors can still participate in bitcoin investment without really holding bitcoin. People in financial institutions are really “ghosts”. Yu Jianing believes that the third reason is related to the implementation of blockchain Technology: “the global digital economy is developing rapidly, and the evolution and innovative application of blockchain technology are also speeding up, especially the rapid development of new industries based on blockchain such as DFI (distributed Finance), encrypted collectibles, blockchain games, etc., and accelerating the enabling industry. The demand for blockchain infrastructure will directly drive the demand for corresponding digital assets, and then drive up the asset price. Bitcoin is the “general equivalent” of digital assets. It is similar to the blue chip of digital asset market. The increase in demand for blockchain platform and digital assets is expected to be reflected in the price of bitcoin Some people in the industry believe that bitcoin’s liquidity is declining and it will be more and more difficult to buy in the future. According to China Fund News, glassnode data shows that bitcoin is becoming more and more difficult to buy, and the number of bitcoin receipts and expenditures between entities is decreasing, which means that liquidity is declining. If bitcoin’s liquidity is low, it means that there are fewer bitcoins available for sale. In the medium term, this could make bitcoin more scarce. On December 31, in response to a tweet by the chief technology officer of glassnode that “one million bitcoins have lost their liquidity,” cryptographic analyst Joseph young commented: “bitcoin will become more scarce by 2021. Position activity from long-term holders is increasing. This shows that confidence in the medium-term market over the special currency is rising rapidly. ” Rafael Schultze Kraft, chief technology officer of glassnode, tweeted that this is one of the most important bitcoin charts for 2020. As liquidity shrinks, investors hoard, and available bitcoin becomes scarce. That is to say, in 2020, one million bitcoins have become illiquid, i.e. held by entities, which spend less than 25% of the bitcoins they receive. There has been less bitcoin available for purchase. ” What is the future direction of bitcoin after its rapid rise? Recently, bitcoin has gone crazy, breaking through the $30000 mark tonight. Although the currency circle was once boiling, while gaining more attention, analysts are worried that bitcoin may face further scrutiny by regulators. Guy Hirsch, US managing director of eToro, an online trading platform, pointed out that bitcoin may also be subject to further scrutiny by regulators as it gets more and more attention, according to China Fund News. Earlier, the U.S. Treasury Department proposed a new regulation on digital currency regulation, requiring some cryptocurrency dealers to provide information about their identities in order to curb the anonymous asset transfer by criminals using the new technology. Meltem demirors, Chief Strategic Officer of coinshares, a U.S. asset management company, also said the new administration of US President-elect Biden would have a potential impact on cryptocurrency. “In general, the Democrats will challenge cryptocurrency because they tend to tighten regulation.” In recent years, Janet Yellen, Biden’s new Treasury Secretary, has warned investors that bitcoin is a “highly speculative asset” and “not a stable store of value.”. However, with global inflation rising and the global economic recession, bitcoin investment is generally regarded as a “safe haven” demand. Throughout the year 2020, bitcoin’s growth rate has reached an astonishing 300%, far surpassing traditional investment products such as stocks and gold. Daily economic news comprehensive economic observer, China Fund News, market data (every time this article is published on the app for the purpose of transmitting more information, it does not mean to agree with their views or confirm their descriptions. The contents or data of the article are for reference only and do not constitute investment suggestions. Investors operate on this basis at their own risk.) Daily economic news

Leave a Reply

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