Bitcoin hit $50,000. What is the reason for the rise of Bitcoin?

Bitcoin has risen because there are institutions and some big names speculating in it, and the supervision of Bitcoin is very unclear, usually rising and falling, leading many speculators to enter the market.

The deep-seated reason behind the large-scale purchase of Bitcoin by traditional institutions is the changes in the global macroeconomic situation this year. On the one hand, affected by the epidemic, the global economic recovery will slow down in the coming year; On the other hand, the extremely loose monetary policy introduced by the central bank has pushed up inflation expectations in financial markets. In the economic environment of high inflation and low growth, in order to avoid the loss of nominal principal and pursue higher returns, investors' demand for hoarding cash naturally evolved into demand for gold and bitcoin.

Many traditional industries have increased their interest in BTC investment, and their preference for institutional investment has also changed significantly. Digital assets are likely to be similar to gold. Since assets exist in the company's balance sheet, Bitcoin has some similarities with gold. For example, it is regarded as resisting the existence of traditional asset bubbles. Compared with gold, bitcoin is still a very young asset, and it is not yet possible to draw a conclusion that it has formed the trend of gold. The reason for this bitcoin bull market is that global central banks have released water, and bitcoin, as a safe-haven asset, has become a new choice for institutional funds. Digital gold? It will become more and more obvious. The fluctuation of password market is also affected by many factors. At present, it is hard to say whether it will stabilize or fluctuate more.

As far as regulation is concerned, the regulatory prospect of Bitcoin is still unclear. Whether Bitcoin can be widely promoted and trusted is also related to whether the regulatory environment is reasonable. In the long run, the legal compliance trend of cryptocurrency will be beneficial to its future development. Therefore, when investing in Bitcoin, we should correctly understand the investment orientation of Bitcoin. For small white investors, you can try to invest a little bit of bitcoin to promote your understanding of bitcoin; However, it is unrealistic to realize the so-called freedom of wealth by investing in Bitcoin. At the same time, investors are not advised to increase leverage for currency speculation. The price of bitcoin fluctuates greatly. In the market research, it is often found that some investors increase the leverage by 10, 20 or even 100, which brings huge investment risks.

After the price of Bitcoin exceeded $20,000 in June 5438+February last year, a large number of new investors began to flood in. Most obviously, compared with 165438+ 10, the market transaction volume of bitcoin increased significantly in 65438+February; Secondly, the price increase of bitcoin began to increase significantly. 10, bitcoin rose from 1 10,000 USD to 20,000 USD, from 20,000 USD to 30,000 USD in half a month, and from 30,000 USD to 40,000 USD in just one week. These signs indicate that the main investment forces in the market may undergo structural changes, and former institutional investors may turn to small and medium-sized investors. Different market forces have great influence on market sentiment and price trend.