In the afternoon of the 14th, Bitcoin started to increase in volume from 47,500 USD, quickly broke through the previous high of 48974, and then began to fall back.
On the 15th, Bitcoin once again rushed higher, failed again, and then plummeted to $45,688. For example, the DeFi concept currency flashed, and the market was worried, and the market would take a sharp turn.
On the 16th, the fifth day of the fifth month of the Chinese lunar calendar, the God of Wealth Festival, Chinese people usually "welcome the God of Wealth", and then set off firecrackers, hang lanterns, burn incense, and send paper money to pray for the coming year. As a result, the market sentiment in the morning was more optimistic, but Bitcoin fell again to around $57,000 in the morning. Near noon, Bitcoin began to violently rush higher. After a slight rounding around 49500, the 50,000 mark was successfully won.
But as of press time, the highest Bitcoin spot on OK Exchange is $50,000, Huobi Exchange is $4,9999.99, and Binance Exchange is $49,998. Obviously, $50,000 is a significant pressure.
Why can Bitcoin break 50,000? If you look at it from a macro perspective, this is almost a certainty. Compared with 2017, Bitcoin's fundamentals are already overwhelmingly good. The continuous breakthroughs are not unexpected by the market. What is unexpected is that Bitcoin runs blindfolded without a callback.
In 2019, a Bitcoin ETF made the entire market excited, but today, only 2 years later, who can believe that ETF has not come, Grayscale, Paypal, Tesla...all have come.
Bitcoin's global attention today, placed 2 years ago, who can imagine it?
Fundamentals are so good that European and American capital markets continue to be "good"
Many people must have seen the fundamentals of Bitcoin. Let's briefly review these recent hot news events. Looking at the leopard in the tube, a leaf knows autumn, can you see the "flavor of change"?
- On February 14th, Counterpoint Global, the investment arm of Morgan Stanley, is discussing whether to bet on Bitcoin. This means that the true leader-level Wall Street financial institutions and the main players in global finance have shifted their perspective to Bitcoin, and the concept of Bitcoin as a digital asset has successfully entered the mainstream financial world. Compared with how much dollars Morgan Stanley will spend to deploy Bitcoin, its social impact is far more significant.
- In January, Miami, the second largest city in Florida, USA, uploaded the Bitcoin white paper to the municipal website. In February, the Mayor of Miami, Francis Suarez, revealed on Twitter that he was studying to allocate a portion of his municipal financial reserves to Bitcoin. At the same time, the founder of Bitcoin Advisory tweeted that the U.S. Treasury Department already holds 70,000 Bitcoins. Perhaps, starting from municipal funds, then to national sovereign funds, and then to the central bank, this path will be much faster than the public imagined.
- At the "Investor Day 2021" event, PayPal Executive Vice President and Chief Strategy Officer Jonathan Auerbach stated that PayPal will increase support for more customers around the world to access cryptocurrencies and digital currencies during the year, making cryptocurrencies a global digital currency. A financing tool for millions of corporate transactions. In other words, it is no longer far away for the public to purchase cryptocurrencies through the "international version of Alipay" PayPal.
- American compliance exchange Coinbase announced its listing on NASDAQ. Olaf Carlson-Wee, CEO of crypto investment company Polychain Capital, said that Coinbase is valued at more than US$100 billion. As a result, the leaders of multiple cryptocurrency tracks such as mining machines, exchanges, and investment have begun to land in the U.S. stock capital market. At the same time, non-cryptocurrency-listed companies are madly entering.
- On February 9, Tether issued a total of 1 billion USDT on the TRON network. In this regard, Tether Chief Technology Officer Paolo Ardoino said that this is an authorized but not issued transaction, which means that the amount will be used as inventory for the next issuance request. As of February 14, the total market value of USDT exceeded US$32 billion, which is approximately US$32.01 billion. Tether continues to "print money", which may be the vane of funds entering the market.
- Looking at the entire cryptocurrency market, since the beginning of the Chinese New Year, almost every track, including DeFi coins, exchange platform coins, Chinese public chain coins, etc., has ushered in a round of skyrocketing, which has been jokingly called by Weibo big V , The cryptocurrency market is giving Chinese investors a new year red envelope.
Looking back in history, Bitcoin is trading sideways and other cryptocurrencies are skyrocketing. Then, the final result will either collapse or return to Bitcoin with smart funds, which will further raise Bitcoin's historical high and complete the real bull market evolution.
Wan Hui: Institutions are out of the bull market
We know that, before this, Tesla announced that it has invested 1.5 billion US dollars to configure Bitcoin and plans to accept cryptocurrency as a payment method. Elon Musk left a message on Twitter: One coin rules everything.
Many people cannot understand the meaning of this matter. We take Wanhui’s latest interpretation as follows:
"Putting Bitcoin into the balance sheet of Tesla's size and influential companies, and Musk's use of his own money to buy Bitcoin for this kind of asset endorsement significance is not an order of magnitude. So what to see Gou Zhuang pulls, narrow cognition such as cutting leek or weird conspiracy theories are really nothing to say.
Tesla, as a constituent stock of S&P 500 and Nasdaq 100, carries the idol-level company that the "next Apple" is looking forward to, and has close to 10% of its cash reserves (it should be more than 10% now, bought It is 7% at the time) to allocate an alternative asset in the traditional sense of alternative assets. For Tesla, which is close to the brink of bankruptcy, it is a nuclear bomb level decision.
This kind of decision involves a series of preparations such as board decision-making, corporate governance, finance, auditing, legal affairs, taxation, etc., and the time and energy required before and after cannot be done by Musk alone. When MicroStrategy did this operation in the past, in order to unify the consistency of the shareholders, it also provided a repurchase plan, that is, if there are shareholders who do not approve the asset allocation decision, the company will provide a repurchase. "
In fact, when Tesla announced the deployment of Bitcoin, some practitioners commented: Since then, the two worlds have been integrated and will no longer be separated.
In the cryptocurrency investment circle, practitioners, especially investors, often use "zhuang" to imply some people's extreme control over the market. Obviously, this is widespread. However, if the underlying asset of Bitcoin is still used to understand and invest in this way, it may be completely out of date. The result is likely to be the air.
Bitcoin, before 2020, most practitioners claim that it is digital gold, and there may not be many people who truly believe that it is digital gold. After 2020, when it becomes digital gold, many people are actually afraid. I don't believe it anymore.
As an asset, it is an indisputable fact that Bitcoin is entering the mainstream view, but does this mean that Bitcoin will really enter the eternal bull market? Obviously, in a longer period of time, even a large price fluctuation may become a smooth arc, but in a short period of time, even a 20% fluctuation may kill many people.
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