202 1 so far, bitcoin has risen by nearly 70%. Bitcoin and other virtual currencies have long been avoided by traditional financial companies, but now they are increasingly entering the mainstream as an asset and a conventional payment tool. However, analysts warned that with the economic recovery, investors should be alert to the risk of bitcoin selling and further volatility. On February 15, Bitcoin once fell below the $46,000 mark to $45,893/piece, down about 6% in the day. Spitting back all the gains on Sunday further proved the risk of sharp fluctuations in the bitcoin market. Driven by institutions and enterprises, BNY Mellon, a bitcoin or mainstream asset, said that it has set up a new department to help customers hold, transfer and issue digital assets. Elon Musk revealed that Tesla has purchased cryptocurrency worth US$ 65.438+US$ 50 million and will soon accept it as a form of payment for purchasing Tesla cars.
Toronto-based asset management company Purpose Investments Inc said that the Ontario Securities Commission has approved the bitcoin ETF launched by the company. Purpose Investments said: This ETF will be the first bitcoin in the world to directly invest in physical settlement instead of derivatives, allowing investors to easily and efficiently enter the emerging cryptocurrency asset class. Investors can use futures contracts of derivatives exchange of Chicago Mercantile Exchange (CME) to trade bitcoin. They can also buy closed-end investment funds, such as Bitcoin Fund of Toronto Stock Exchange.
Edward Moya, senior market strategist at OANDA, said:? The actions of institutional investors and American enterprises show that this trend will not disappear soon. There is still a lot of money to join this trend. ? Francis Suarez, mayor of Miami, also said that Miami is seeking to introduce Bitcoin into its operation, which may bring dividends in attracting technology companies. 20211/in October, BlackRock Inc, the world's largest asset management company, listed Bitcoin as a compliant investment of two funds. MasterCard, a credit card giant, plans to support some cryptocurrencies, which also enhances Bitcoin's ambition to develop into mainstream finance. But many banks are still reluctant to participate.
Bitcoin and related sectors rose sharply due to concerns about selling risks and increased market volatility.
The cryptocurrency miner Riot blockchain rose by 14% last Friday, the highest weekly increase in 1 10% in seven years, and the largest weekly increase in 20 17 years. The digital asset technology company Marathon Patent Group has a weekly growth rate of over 70%.
William, chief researcher of OKEx Research, believes that the positioning of Bitcoin is changing from the current market situation. The direct cause of the soaring price of Bitcoin in the last round was the high net worth and the admission of institutional investors. The deep-seated reason behind traditional institutions buying bitcoin in large quantities is the change of global macroeconomic situation. On the one hand, affected by the epidemic, the global economic recovery slowed down. On the other hand, many central banks have introduced extremely loose monetary policies, which have pushed up inflation expectations in financial markets.
Regarding the future trend of Bitcoin, William said that institutional investors are concerned about profits. After the epidemic situation has gradually eased, with the gradual recovery of the economy, monetary policy will gradually change from loose to moderately tight. At that time, institutional investors may sell bitcoin. Prior to this, bitcoin will still maintain an upward trend in general. Of course, as the price of Bitcoin is getting higher and higher, the fluctuation of the market will gradually enlarge, and investors are not advised to add too much leverage.