Source: yicai.com original title: from 20000 to 30000 US dollars, only half a month later, what forces are pushing bitcoin to soar? As of 11:02, January 3, Beijing time, the price of a bitcoin was $32775.7. It took only half a month for bitcoin to break the $30000 mark. What is the reason for such a sharp rise in encryption assets? After sorting out the important time nodes of this round of bitcoin bull market, the first financial reporter also found that two time nodes are worthy of attention: first, in mid October 2020, bitcoin stood at the $10000 level; second, in mid December 2020, bitcoin broke through the $20000 mark, setting a new record. At the same time, after bitcoin broke through US $10000 in early October, that is, the first important time point, we can observe the signs that some institutions in the market have begun to enter. For example, on October 8, square, a mobile payment giant, suddenly announced an investment of $50 million in bitcoin; on October 13, stone ridge, an asset management company that manages more than $10 billion of assets Holdings said it had purchased more than 10000 bitcoins, worth about $114 million; PayPal, the world’s largest cross-border payment platform, announced on October 22 that it would allow users to buy, sell and hold cryptocurrencies on the platform; and on October 27, Singapore’s largest commercial bank, DBS Bank, announced that it would provide cryptocurrency transactions. “From $10000 to $20000, traditional institutional users are the main force of market growth. These traditional giants entered the cryptocurrency market and bought a lot of bitcoin, which brought unprecedented heat and optimistic expectation to the market, and led to the rise of bitcoin price. ” OKEx However, in the second stage, some interesting phenomena were found: when the bitcoin price broke through the $20000 mark, a large number of investors began to pour into the cryptocurrency market, which once caused some cryptocurrency exchanges to get stuck or shut down. This indicates that the main investment force in the market may undergo structural changes The former institutional investors turned to small and medium-sized investors; on the other hand, the market excitement was further amplified, and people were more optimistic about the future of the special currency, and their risk tolerance was lower (market research found that many people can borrow money and increase leverage to speculate in currency). The two factors work together to push the price of bitcoin up rapidly. It is worth mentioning that there are some regulated trust products linked to bitcoin and Ethereum. It is understood that some Wall Street institutions, which are limited by compliance requirements and unable to directly invest in encrypted assets, have begun to lay out through such trusts. Among such trusts, gray trusts are the most popular this year. For example, the gray bitcoin trust (GBTC) is the largest crypto digital asset trust product under the gray scale. GBTC fund is similar to ETF (Exchange Traded Fund), but there is no redemption mechanism. There is also a six-month lock-in period for the sale in the secondary market. The application of GBTC in the primary market is only for qualified investors. According to the third quarter report, 80% of the clients are institutional investors (mainly hedge funds), so it is a good indicator to observe the capital inflow of institutions. The total position of GBTC has increased by 58.3% in less than half a year to close to 570000 bitcoins, which indicates that a large amount of institutional capital has begun to pour into bitcoin in the second half of this year. However, traders generally believe that the bitcoin bubble has been very huge, blindly entering the board or even adding leverage or the possibility of a burst. “There is also a need to pour cold water on some investors in the current currency circle – for institutional investors, they care about profits, not feelings like ‘bitcoin belief’ or ‘blockchain revolution’. With the gradual recovery of the economy, the monetary policy will gradually change from loose to moderate tightening after the vaccine is put on the market and the epidemic situation is gradually alleviated. At that time, institutional investors are likely to sell bitcoin. Of course, before that, bitcoin will still maintain the main upward trend. Of course, as the price of bitcoin becomes higher and higher, the market volatility will gradually enlarge, and investors are not recommended to increase excessive leverage. ” William said.