The world’s largest asset management giant has entered the board. Who will be next? How long can bitcoin’s “wind” blow? Institutions: need to be vigilant against the risk of drastic price fluctuations

Photo source: during the Spring Festival of visual China, bitcoin became one of the world’s largest assets. Bitcoin prices topped $50000 for the first time on Tuesday (February 16) and broke through $52000 the next day, according to market service firm coindesk. As of 17:23 on the 18th, the price of bitcoin was $51618. With a group of large institutional investors entering the cryptocurrency market last year, bitcoin seems to be on the fast track of institutional acceptance. Mainstream Payment institutions, asset management giants and listed companies have participated in the process. Anthony scaramucci, founder of skybridge capital, a hedge fund, predicted on Wednesday that strong demand and limited supply would boost bitcoin prices to $100000 by the end of 2021. But on the other hand, there are still many doubts about the violent price fluctuation of the special currency and its ability to pay as a real currency. In the month and a half since the beginning of the year, the price of bitcoin has risen by more than 70%. The reason behind its overwhelming price is that bitcoin is getting more and more endorsement from institutions. Since this year, more and more heavyweight institutions have participated in bitcoin investment. On Wednesday, Rick Rieder, global fixed income chief investment officer and head of multi asset strategy global allocation investment team of BlackRock, the world’s largest asset management company, revealed that BlackRock had begun to enter the bitcoin sector. BlackRock listed bitcoin futures last month as a potential investment project for its two funds, BlackRock strategic income opportunities and BlackRock global allocation fund, according to the company’s filings with the U.S. Securities and Exchange Commission. And two days ago, according to a source, the investment management unit of Morgan Stanley, counterpoint global, is studying whether cryptocurrency is a good choice for its investors. Counterpoint global, a Morgan Stanley mutual fund with $150 billion under management, manages about 19 funds, five of which grew 100% in revenue last year. In addition, bny Mellon, the oldest bank in the United States, and other financial institutions such as MasterCard have also entered the field of cryptocurrency. Bank of New York Mellon plans to provide its customers with digital currency storage and transfer services such as bitcoin, and MasterCard plans to allow customers to pay some cryptocurrencies directly in its payment network later this year. Meanwhile, listed companies are stepping up their bets on bitcoin. MicroStrategy, which has been aggressively deploying the bitcoin market, announced on Tuesday that it would increase its holdings of bitcoin again. The company plans to issue $600 million in bonds and then use the net proceeds of the sale to buy bitcoin. MicroStrategy currently has more than $3.5 billion worth of bitcoin, according to coindesk. Tesla also announced last week an investment of $1.5 billion in bitcoin and plans to accept digital currency and other cryptocurrencies as payment means for its automotive products. It is one of the most concerned topics in the current financial market to what high the price of bitcoin, the cryptocurrency, can be pushed to by this institutional carnival. Most bitcoin watchers believe that the current price of bitcoin is far from the peak. On February 17, Anthony scaramucci, founder of skybridge capital, a hedge fund, said strong demand and limited supply would help bitcoin prices nearly double to $100000 by the end of 2021. Anthony pompliano, co-founder and partner of Morgan Creek digital assets, a cryptocurrency hedge fund, said on the same day that bitcoin prices could reach $500000 by 2030 and $1 million at the end, but he did not give a specific timetable. Pompliano also pointed out that as more and more people enter the market, liquidity will increase, eventually leading to a more stable price of bitcoin. “I think bitcoin will eventually become a global reserve currency, and its market value will eventually far exceed gold,” he added However, some institutions believe that bitcoin’s rise is not sustainable and will eventually become a financial bubble. The doubts of the short side mainly focus on its unpredictable price fluctuation and the payment feasibility caused by the fluctuation. JPMorgan warned about the high volatility of bitcoin in a report to clients in January and said in a report released on February 17 that bitcoin’s real price volatility in three months was 87% and that of gold was 16%. That is, bitcoin is five times more volatile than gold. JPMorgan said that unless bitcoin’s price volatility eased quickly, the upward momentum that pushed bitcoin’s price above a record $50000 would not be sustainable. In January, UBS cautioned against the risk of bitcoin falling below zero. “The value of cryptocurrency is likely to return to zero due to competition from regulatory measures and better designed versions. Investors who hold cryptocurrency will lose their assets. ” Nouriel Roubini, a well-known economist known as “Dr. doomsday”, questioned the qualification of the special currency as a currency or asset. Bitcoin and other digital currencies should not even be considered money because they lack many of the basic features that money must have, he said on Wednesday. “Fundamentally, bitcoin is not a currency,” Roubini said. It’s not a unit of account, it’s not a scalable way of payment, it’s not a stable store of value. ” (statement: the content of this paper is for reference only, not as the basis for investment. Investors operate on this basis at their own risk.) Daily economic news

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