Yiqijuechen, Chinese bitcoin market turnover in May has been ahead of April total

Yiqijuechen, Chinese bitcoin market turnover in May has been ahead of April total

Since 2009, bitcoin has attracted great attention at home and abroad, about its generation, storage, exchange and application of formation of the ecosystem, and promote the emergence of hundreds of encrypted digital currency. As an important link of bitcoin ecological chain, in the two trading market trading behavior through currency bitcoin trading is very active.

In June 5th, the national Internet financial security technology expert committee released the May domestic bitcoin transaction monitoring report, the report shows that in May 1, 2017 -5 month 31 days, bitcoin market capitalization grew from $23 billion 340 million to $37 billion 480 million, or 60.6%. For a long time, bitcoin occupy the dominant position in the world hundreds of virtual digital currency, reflected in the market value of long-term market value of the virtual digital currency accounted for about 90%. The monitoring results show that in May 1st -5 month 31 days, bitcoin market capitalization accounted for by 59.1% further decreased to 45.62%.

Figure 1 bitcoin market value and market value accounting change trend


Why bitcoin prices continue to rise?

China Merchants Securities Liu Zejing said the team has issued a document, there are two main reasons:

With the increase of economic fluctuations is a part of the country, risk aversion prompted bitcoin investment funds into the market;

Two is the bitcoin block chain concept is gradually more and more people understand and pay attention to. “The two are mutually supporting, people will choose the bitcoin hedge funds just reflects the bitcoin block chain is gradually being face.”

Guotai Junan Securities Research Institute of communications chief analyst Song Jiaji said that the total amount of bitcoin is determined, a total of 21 million medals, and is in the form of code to determine (code is law), as if the investment goods, it is scarce and non renewable, and the current market capitalization of $50 billion, on turnover of over $1 billion.

In May, the domestic bitcoin trading turnover of 21 billion 708 million yuan, the transaction size compared with the previous 3 months increased 4 times in April turnover. The transaction price is also rising, in May 10th, the domestic bitcoin trading price for the first time exceeded million yuan, and in two weeks time after rising, the highest price continuous refresh record, 19200 yuan the highest price in history in May 25th.

Figure 2 in recent months, the domestic bitcoin trading volume trend


Figure 35 month bitcoin trading price and the turnover trend


In fact, whether bitcoin has investment value, the key factor lies in the attitude of governments. Bitcoin was born at the beginning of the year, governments as great scourges, but the situation has changed.

At the end of June 2013, the German parliament decided to hold bitcoin for more than a year will be tax-free, bitcoin is the German Ministry of finance as a unit of account”.

In August 2013, the United States Texas District Court judge Amos Mazant together in the bitcoin virtual hedge fund in the case ruled that bitcoin is a currency that should be included in the scope of the regulation of financial regulations.

“At the beginning of the year, the regulatory restrictions of domestic currency exchange platform. In June 1st, major bitcoin trading platform to raise money, but the amount is limited. Since bitcoin to the center of the characteristics, is not an issue, how to reasonable regulation is still need to face the problem.” Song Jiaji said.

Overall, two trading market exchange is an important part of the ecological chain of bitcoin, participate in the number of users, transaction size. At the same time, bitcoin transaction risk, including price volatility, market manipulation, information disclosure, and trading platform to run away.