Anbbit Analysis|Breaking through the $50,000 mark is a sign that the BTC market is too speculative
The real bull market is coming?
The price of Bitcoin hit a new high. According to Anbbit’s data, Bitcoin broke through the 51,000 on the 17th and hovers around $52000 as markets wait and see whether the current price level will be held in the next few weeks.
So far, Bitcoin has risen by more than 80% this year, and the total market value in circulation has been over $940 billion.
Market participants said that some institutions and large companies have recently expressed their intention to enter the digital currency field, which has pushed up the price of Bitcoin. In the future, the changes in the flow of speculative funds and the attitude of the regulators that have made a profit may affect its trend.
There are signs that the cryptocurrency is being accepted by mainstream investors and companies such as Tesla, MasterCard, and Bank of New York Mellon.
Analysts have issued a warning on the sustainability of Bitcoin prices under this market. Some analysts believe that Bitcoin is far from becoming a widely used form of payment.
Mark Haefele, Chief Investment Officer of UBS Wealth Management, said,
“We advise investors against viewing this as a ‘mainstream moment’ and suggested that keep caution when speculation as crypto is not a currency”.
We also believe that platform companies that already have an internal payment ecosystem will not join this round of cryptocurrency wave.
JPMorgan Chase analysts stated in a report that the supply of bitcoin is based on the production of a certain amount of new coins by “miners”. The limited supply causes holders to charge a premium for bitcoins flowing into the market; the inflow of retail funds may also The funding flow of the agency has been magnified.
The report pointed out that Bitcoin’s breakthrough of $50,000 and a record high is unsustainable unless the sharp fluctuations in the price quickly cool down.
Prior to this, Yellen, the new US Treasury Secretary, publicly stated this year that the United States should pay attention to emerging tools for terrorist financing.
She believes that cryptocurrencies have a chance to be misused by illegal financing, and the government will need to review the ways in which they can be used and ensure that they will not be laundered through these channels.
(This is only a reference, but not the investment suggestions)
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