Oriental Fortune Network reported on the 24th that according to market trends, the price of Bitcoin exceeded US$2,400 during the session, setting a new historical high again.
Why is Bitcoin rising? Some analysts believe that the surge in Bitcoin is affected by multiple positive factors such as investor risk aversion and the legalization process. Analysts at the currency bank believe that global market risk aversion has returned. As the US dollar continues to fall, selling sentiment has intensified, accounting for 30% of the global Bitcoin trading market share. Additionally, an influential Japanese group announced the launch of an independent digital currency exchange, leading to a sharp increase in demand for Bitcoin. Rumors such as Australia will treat Bitcoin as currency in July 2017 are directly beneficial to Bitcoin.
However, enthusiasts need to be reminded that madness means risks, but they should still remain vigilant and pay rational attention. A special analyst from Huobi.com said that because the application value of Bitcoin is difficult to estimate, the current currency price has reached a record high. While investors are reaping benefits, they must also be wary of risks that may arise at any time.
Regarding the skyrocketing price of Bitcoin, CITIC Securities investment consultant Sun Jiaxin analyzed that the recent price of Bitcoin can be described as "crazy", which also means high risk. The surge in Bitcoin prices is partly due to speculation and partly due to the stimulation of Bitcoin by ransomware incidents. In fact, the Bitcoin market is highly volatile and the market capacity is still small.
Is Bitcoin’s surge related to A-shares?
According to a Yahoo Finance article, CEO Gundlach, known as the "Bond King", said there may be a correlation between the surge in Bitcoin prices and the decline in China's stock market.
He believes there may be a correlation between the surge in Bitcoin prices and the decline in Chinese stock markets. Jeff tweeted on Tuesday afternoon that Bitcoin had doubled in less than 2 months, while the Shanghai Composite Index fell nearly 10% during the same period. The world's major stock indexes have all shown an upward trend so far, such as the MSCI index which rose by nearly 8.8%.
Twitter screenshot
Jeff believes that as China's stock market falls and asset prices fall, Chinese investors seek safe assets overseas.
But it’s not just Chinese investors that are driving up Bitcoin prices now.
While it's not wrong, it's not comprehensive.
Brian Kelly, CEO of BKCM, believes that the apparent outflow of Chinese funds pushing up Bitcoin prices is part of the reason, but not all.
Bitcoin trading demand for Japanese yen and U.S. dollars has also seen a significant increase. After Japan began to recognize the legal payment status of Bitcoin, the Japanese yen Bitcoin trading volume accounted for almost half of the total trading volume.
At the same time, the People's Bank of China began investigating local Bitcoin trading platforms in January this year, and demand for Bitcoin shrank significantly. The proportion of China's Bitcoin trading volume to total trading volume has dropped from the previous 80-95% to 10% or even lower.
标签： #Bitcoin #Digital Currency
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