(Financial World) Breaking through the US$28,000 mark, why did Bitcoin "surge soaring"?

  China News Agency, Beijing, December 27th (Reporter Xia Bin) Since the stand of USD 20,000 on December 16, Bitcoin has started a "skyrocketing" mode: In just 11 days, the price of a Bitcoin has been continuous It broke through the eight round mark between 21,000 and 28,000 US dollars.

  According to Coindesk's data, at around 19:15 on the 27th, the Bitcoin price hit a maximum of 28,323 dollars, and the overall market value exceeded 525 billion US dollars, or about 3.4 trillion yuan, which was approximately higher than the A-share "market value king" Moutai. 1.1 trillion yuan.

  Why did Bitcoin soar?

"This may be different from the speculation or hype that everyone thinks of. Speculation and hype do exist, but they are not the main reason." OKEx Research chief researcher William told a reporter from China News Agency that the direct cause of Bitcoin's surge is high net worth and Admission of institutional investors.

  He pointed out that since the second half of this year, institutions such as the American insurance giant MassMutual Life Insurance Company and the business analysis company MicroStrategy have bought bitcoin; online payment giant PayPal and Singapore's large commercial bank DBS have also announced the launch of cryptocurrencies. Payment service.

According to data from Bitcoin Treasuries, there are currently more than 6.9 billion U.S. dollars in Bitcoin held by listed companies, which has brought prosperity to the Bitcoin market.

  Meng Xiaoni, CEO of Bit Deer, told a reporter from China News Agency that Bitcoin's recent rapid appreciation is due to the large-scale release of liquidity by global monetary policy to stimulate the economy after the outbreak.

This "opening the gates and releasing the water" environment has put the global market in a monetary easing cycle. While the liquidity of funds has been greatly improved, the demand for hedging has increased. The two together produced the above results.

"In fact, it is not only Bitcoin, but the stock market has performed well this year."

  She also pointed out that various financial experiments and product innovations around Bitcoin have achieved good results this year.

As the cornerstone of blockchain financial products, this track attracts capital and continues to lay out, showing a strong upward trend overall.

  But don't just stare at Bitcoin's "skysurge", it has also fallen, and it has fallen terribly.

According to the Bitcoin price chart, from 2016 to today, there have been ten cases where Bitcoin has fallen by 20% or more; there have been seven cases where Bitcoin has fallen by 30%; four times have fallen by more than 48%. This means that holding Bitcoin may experience four price "halves" in the past five years.

  "When the price of Bitcoin exceeded the $20,000 mark, a large number of investors began to pour into the cryptocurrency market, which once caused some cryptocurrency exchanges to experience stagnation or downtime." William said bluntly, which indicates that the main investment force in the market may be Structural changes have occurred, shifting from institutional investors to small and medium investors.

The market’s excitement and fanaticism are further amplified, which may lead to large fluctuations in the price of Bitcoin. It is hoped that market investors will remain rational and not increase leverage at will.

  Meng Xiaoni also mentioned that Bitcoin prices are volatile, and participants should stay away from leverage and contracts to avoid chasing ups and downs and frequent short-term transactions. After all, only a few can truly outperform the market.

At the same time, we must pay attention to the security of asset custody. Now that there are many exchanges, wallets, and custody institutions, the hidden dangers of platform security cannot be ignored. If you do not have custody capabilities, you must choose a service platform with good credit and a big brand.

  There are also many voices advising investors to stay away from Bitcoin.

Nuriel Roubini, a professor of economics at New York University, said that cryptocurrencies such as Bitcoin should not appear in the portfolios of retail or institutional investors. They are not currencies, accounting units, means of payment, and stable. A store of value, not even an asset.

Bitcoin's growth is speculative, self-fulfilling growth, and this growth is driven entirely by the manipulation of market predators.

  How will Bitcoin go in the future?

Compared with the end of 2019, Bitcoin has gained more than 280% growth this year.

Regarding the trend of next year, Meng Xiaoni believes that there are two possibilities: one is that the overall volatility of Bitcoin is getting larger and larger; the second is that from the perspective of the global economic development next year, it is unlikely that there will be a similar phenomenon to this year. In the global liquidity crisis of the month, the probability of an extreme situation where the currency price plummeted below $4,000 is unlikely.

  "After the vaccine is on the market and the epidemic is gradually alleviated, as the economy gradually recovers, monetary policy will gradually turn from loose to moderately tight. At that time, institutional investors may sell Bitcoin." William believes that before this, Bitcoin Generally speaking, the main trend of rising will be maintained. Of course, as prices become higher and higher, market fluctuations will gradually increase. Investors are not recommended to increase leverage.