Since the bear market last year, investors are most concerned about how to reinvigorate bitcoin.
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The latest report from digital asset research institution Delphi Digital pointed out that although many experts believe that digital assets and traditional finance are two independent systems, the current situation of weak macroeconomic development may become a big advantage to promote the continuous development of the cryptocurrency industry.
Bitcoin or investors looking for "high growth"
According to the report, with the growth of investment strategies (companies that tend to invest in strong growth, in order to maximize capital gains), the bitcoin may benefit in the coming months to years.
Currently, these growth investors prefer FAANG (American technology giants, namely Facebook, Apple, Amazon, Netflix and Google) and other Silicon Valley startups, and they are likely to throw olives into Bitcoin in the future.
Delphi Digital analysts said that given the current slowdown in economic growth and weak earnings prospects, growth assets can often outperform the market.
“Investors who adopt growth strategies tend to invest in assets that are more risky but have better earnings expectations, such as Bitcoin.”
In addition, the report also gives a comparison of the market's representative growth index and BTC yield curve, including the S&P 500 Information Technology Index, the MSCI Emerging Markets Technology Index and the Russell 3000 Growth Index. From the comparison chart, the high-risk and high-yield bitcoin and growth stocks are quite similar.
(Source: Delphi Digital)
In addition, cryptocurrency analyst Joseph Young recently issued a note that according to OnChainFX data, since January 1, Bitcoin has risen 37% against the US dollar, exceeding the S&P 500 and Nasdaq 100. Most stock indexes, including the index (Nasdaq 100).
Quantitative easing side boosts BTC market
Previously, Brendan Bernstein, founding partner of cryptocurrency hedge fund Tetras Capital, also believes that Bitcoin's long-term development prospects are good, saying that macroeconomic factors may boost BTC prices in the coming months.
He pointed out that the quantitative easing policy adopted by the Fed in the past 10 years also contributes to the adoption and development of BTC.
Fiscal and monetary policies such as quantitative easing are often seen as a catalyst for the development of the encryption industry over the past decade. But some analysts said that excessive use of quantitative easing may exacerbate the instability of traditional economies (such as inflation and fiscal risks), which is why crypto assets such as Bitcoin can take the opportunity to rise.
In addition, Arthur Hayes, CEO of bitcoin futures exchange BitMEX, also said that bitcoin prices may exceed $50,000 in the next two to five years. He believes that the monetary policy of the Federal Reserve and other major central banks will make investors in global financial markets more inclined to invest in risky assets because of the pursuit of profitability. This risk appetite affects the encryption market and increases the capital inflow of Bitcoin and other digital assets. (Scallion block chain)