Who is the biggest beneficiary of bitcoin’s breakthrough of 28000 dollars?

No one expected that bitcoin would rise for three months. On the evening of December 27, 2020, bitcoin prices have been rising all the way, reaching a maximum of $28323, up 13% in 24 hours. According to asset dash data, based on the current market value of $504 billion, bitcoin’s market value ranking has surpassed the total value of stocks of well-known companies such as visa and Wal Mart, jumping to No. 11. In the past half a month, bitcoin has continued to hit a record high, from $20000 on December 16 to $25000 and now to $28000. Compared with the low price in March this year, bitcoin has more than quadrupled. Even compared with all the financial assets in the world, bitcoin’s investment returns this year are quite unique. In the global context of monetary easing, bitcoin has become one of the beneficial assets in this wave. “Bitcoin broke through $30000 by the end of the year, and $100000 next year is not a dream.” With prices soaring, investors in the community have made similar bold predictions. Along with bitcoin’s soaring price, there are not only the cheers of encryption investors, but also new wealth stories. Only this time, the protagonist of the story of sudden wealth has become an institutional investor. For example, bitcoin’s listed companies venture into the board. In June this year, MicroStrategy invested a lot of money to buy bitcoin, and then the information disclosed by the company showed that the average price of 38250 bitcoin purchased by MicroStrategy was only US $11000. Even if the subsequent additional purchase was included, the floating profit of this part of investment had exceeded US $600 million, exceeding the total net income of its business operation in the past three years (2017-2019). In addition to listed companies, investment institutions also make a lot of money in the encryption market. According to bitcoin treasuies data, a total of 16 listed companies have bought BTC, with a total investment of 1.4 billion US dollars. At present, the total holding of BTC is 115300 pieces of bitcoin. At present, the overall capital floating surplus is more than 70%. The ordinary investors who enjoy this feast are more “value investors” or fixed investors who buy bitcoin earlier and then do nothing. For example, players who dare to buy bitcoin or bitcoin perpetual contract at the end of March this year, or “coin man” who has previously paid close attention to regular action. Since July 2, 2018, the latter has been fixed for 127 times, with a total cost of 127000 yuan and holding 2.6426 bitcoin. According to the currency price on December 28, his current floating profit is about 335108 yuan, and the yield is more than 260%. Although it’s not amazing, compared with many frequent trading players, the yield is already very bright. In addition to a small number of players, there is a group that makes money in this bull market: miners. In March this year, the entire encryption market suffered a liquidity crisis. Bitcoin fell below $4000 for a short time. Many bitcoin miners had to shut down to reduce losses. However, miners with abundant cash flow increased their investment to buy second-hand mining machines. Last month, Shen Hong, a miner, told law move that he had bought two batches of mining machines, which brought him 70% and 100% returns respectively, which can be said to be a huge return. In fact, both investors who buy bitcoin spot from the secondary market and bitcoin miners have not been cleaned out of the market in the crypto market, which has plummeted and skyrocketed. One of the common points is that they have not used high-risk financial instruments such as borrowing and leverage. Compared with other financial markets, the encryption market’s unrestricted rise and fall will eventually eliminate those speculators who fail to balance risk and return. The loss is crazy in the rich and bankrupt on the brink of trial contract players. According to market website data, on December 27, when the price of bitcoin exceeded 27000 dollars, the total amount of open positions in the whole network within 24 hours reached 438 million US dollars, about 2.85 billion yuan. Three days ago, when bitcoin fell from $23000 to $22000, there were $768 million in 24-hour positions, about 5 billion yuan. Whether it is short or long, there are always speculators submerged by the market when the market fluctuates violently. “Pusher” and the rise of asset prices such as bitcoin and stocks are inseparable from the change of economic situation under the macro background. On December 17, this year, the US Federal Open Market Committee (FOMC) announced the interest rate resolution, showing that the benchmark interest rate remained unchanged in the range of 0% – 0.25%. The Fed said it would continue to buy at least $120 billion of bonds a month “until substantial further progress is made towards achieving the Commission’s maximum employment and price stability goals.”. 21% of the U.S. dollar was printed in 2020. Under the background of global release, investors put their money into the securities market to avoid the loss of holding cash, which also led to the collective rise of stocks, bitcoin and other assets. The shares of Tesla, a new energy vehicle leader, TSMC, a chip leader, and beyond meat, a man-made meat leader, have performed astonishingly. In particular, Tesla has increased by more than 600% in the year, which is far away from the old car companies such as Toyota. In addition, companies or institutions, including MicroStrategy, the world’s largest business intelligence company, one river, a new investment company focusing on institutions, and MassMutual, all bought hundreds of millions of dollars worth of bitcoin and looked at the potential of the asset in the long run. Another data that most intuitively shows the layout of bitcoin by institutional or professional investors is: the scale of gray investment trust has exceeded $16 billion, and at the beginning of the year, this figure was only $2 billion. It is understood that the current daily turnover of GBTC is about 400 million US dollars, which is the same as Starbucks, Oracle and other giants, and has even exceeded nvax, the medical darling, which has increased 24 times this year. The increasingly rich channels of bitcoin investment have also lowered the entry threshold for ordinary investors. On November 13, this year, PayPal, an overseas payment tool with 300 million users, opened its cryptocurrency trading service to us users, enabling users outside the circle to directly invest in special currencies through PayPal. Dan Morehead, chief executive of Pantera capital, an encryption investment firm, said in an interview with CNBC that the daily purchase of bitcoin on PayPal platform is equivalent to the daily output, which has increased by 30% in just one month. With the gradual loss of “value storage” and “digital gold” attributes imposed on bitcoin in the early years, its performance is more and more similar to that of commodities. In the context of the global flood, it will not be surprising that bitcoin will break through the historical high point and even continue to break through the new high in the future. When the market has been brought up by emotions, it is the right thing to adapt to the trend. In line with this, bitcoin, as one of the bulk commodities, will show more and more characteristics of eating meat by institutions and drinking soup by retail investors. Coupled with the particularity of cryptocurrency itself, investors on this track should also be more cautious. In March this year, the liquidity of global capital market was indeed true. Almost all mainstream assets such as US stocks, A-shares, crude oil, gold and silver all fell. Bitcoin was no exception, with a sharp drop of nearly 50% in 24 hours. The whole crypto market had a 24-hour exposure of 22 billion US dollars. As the commodity nature of bitcoin strengthens, its price is increasingly linked to global assets. With the large-scale entry of institutions, the chain reaction of institutional selling is also more and more worthy of attention. For example, arkw, a big position holder of GBTC, MicroStrategy, a listed company, and square, a payment giant, etc. In 2018, James Cordier, 55 year old godfather of options, thought that natural gas, which was still rising, had reached the peak. He resolutely short natural gas and sold call options naked. If we look at natural gas now, James is right, but unfortunately he is bearish in the upward trend. In November 2018, natural gas rose to $122, a 13 year high, while James’s $150 million was out of stock. At present, bitcoin, already on the high-speed train of technology assets, is already in the bubble of science and technology. As for when it will burst, no one can predict. What investors need to do is to adapt to the current situation on the premise that the risk can be controlled. Source: Tencent Technology Review: Tan Lugang

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